The Australian government will publish a consultation paper in early 2023 as part of its token mapping exercise, the paper will give insight into how certain crypto assets should be regulated, and company licensing frameworks, amongst others.
Since the collapse of FTX, Australian regulatory and enforcement authorities have focused more on the crypto industry, and the government has emphasized the need for stronger consumer protection regulations as quickly as feasible.
The government of Anthony Albanese is “taking measures to tighten the regulation of crypto service providers and offer extra safety for Australians,” according to Treasurer Chalmers in a statement on December 14.
Chalmers that the consultation document would address this procedure as well as frameworks for business licensing, asset custody, and consumer safeguards as part of its previously stated token mapping project.
“The next steps in the Government’s ongoing ‘token mapping’ work will include the release of a consultation paper in early 2023 to inform what digital assets should be regulated by financial services laws, and the development of appropriate custody and licensing settings to safeguard consumers.”
“The Government will consult on a custody and licensing framework after the release of token mapping before adopting legislation,” he said.
Chalmers’ most recent remarks support a pledge made by the Treasury in mid-November that it will create and implement a strong regulatory framework for cryptocurrencies in 2023.
The government has set reform regulations on financial market infrastructure, particularly in relation to the clearing system, payments systems, and the Buy Now Pay Later sector of the Australian Securities Exchange (ASX), which is the focus of the government’s effort to “modernize Australia’s financial system.”
The Australian government has generally supported crypto, although it has emphasized the need to foster innovation while ensuring public safety.
In a paper on stablecoins that was released on December 8 by the Reserve Bank of Australia (RBA), it was claimed that authorities are “undertaking substantial effort” to determine how to securely incorporate them into the ecosystem.
According to the paper, “Stablecoins have the potential to improve the effectiveness and usefulness of a variety of payment and other financial services.”
