“As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers,” said Treasurer Jim Chalmers.
According to the government, quick legislative changes need to happen in an effort to keep up with the changing landscape of cryptocurrency, starting with token mapping.
The Albanese government has said that Australia is in the midst of a “digital revolution” but that regulation around crypto assets is not keeping up with sector.
To combat this, Treasurer Jim Chalmers, Assistant Treasurer Stephen Jones and Assistant Minister for Competition, Charities and Treasury Dr Andrew Leigh will prioritise work on ‘token mapping’ throughout the remainder of this year.
Token Mapping refers to the process of determining characteristics of digital currencies and includes the number, type, and underlying code of all available cryptos in Australia.
Coin Gecko has a similar database of information on cryptocurrencies, however, their website is not regulated by a government.
It’s the first time anywhere in the world a country is undertaking such a process according to the government who first came to the idea of token mapping through recommendations from a Senate Committee report.
“With the increasingly widespread proliferation of crypto assets – to the extent that crypto advertisements can be seen plastered all over big sporting events – we need to make sure customers engaging with crypto are adequately informed and protected,” said Mr Chalmers.
According to the Australian Tax Office (ATO) over one million taxpayers have had some kind of cryptocurrency since 2018.
It’s hoped that reforming crypto asset regulations will bring about much needed safeguarding for consumers.
“The aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets.”
A public consultation paper will be available on the process sometime later this year.
