Australia plans to implement token mapping amid intensified efforts to regulate crypto industry

The Australian Government has announced plans to: token map All digital assets in the crypto sector as we step up our efforts to protect consumers from unregulated market conditions.

The Australian Tax Office estimates that over 1 million people have traded crypto assets in the region since 2018. As a result, governments are looking to improve their regulatory systems to provide more protection to their customers and investors.

Treasurer Jim Chalmer, who is leading the regulation, said:

With the proliferation of crypto assets becoming more widespread, we need to ensure that customers involved in crypto are well informed and protected.

Token mapping for all crypto assets

Regulators in the token mapping process classify tokens based on their asset type, underlying code, and other defining technical characteristics.

Well-defined asset classes allow governments to regulate the industry based on existing laws and to enact new laws where certain asset classes require special legislation.

Jim Chalmers also said the process would allow the government to work on licensing frameworks, consider exchange custody obligations, and provide additional consumer protections.

Is the government trying to buy you time?

Australian Lawyer Aaron Lane claimed The token mapping exercise is a time-buying strategy by the government. He argues that consumers in the region need urgent regulatory protection because bad guys are using a lax environment to exploit them.

First official comment on what the Albanian government is doing #Crypt Regulation – token mapping to buy time to resume the Treasury Department’s discussion paper process that started earlier this year. https://t.co/rjE4JAfctr

Aaron Lane (@AMLane_au) August 21, 2022

Crypto regulation in the Australian market

The Australian consumer advocacy group (Choice) has lobbied the government to accelerate the crypto regulation process as cases of cryptocurrency exchange collapses and fraud attacks increase.

the government Australian Prudential Regulatory Authority (APRA) It detailed plans to fully regulate the cryptocurrency market by 2025. It plans to continue consultations and draft frameworks until 2023, after which clear regulatory standards will be introduced in 2024 and 2025.

However, Central Bank of Australia Governor Philip Lowe has argued that cryptocurrencies, if properly regulated, could be better than Central Bank Digital Currencies (CBDCs). Rowe said:

I tend to think that a private solution would be better if the regulatory arrangements could be done right.