Australia’s crypto regulators are trying to go where no government has gone before.
At least according to him.
In a statement on Monday, the Australian Treasury announced a multi-stage plan to establish a crypto regulatory framework that it claims will be more thorough and better informed than those already established “anywhere else in the world”.
Key to the government’s approach will be a form of market research it is calling “token mapping.” Token mapping will allow authorities to see and evaluate micro-trends in the Australian crypto markets, at best”Identify how crypto assets and related services should be regulated.”
Today’s statement from Jim Chalmers, Treasurer of Australia under Prime Minister Anthony Albanese, emphasized the importance of comprehensively understanding crypto markets before drafting regulations.
“The previous government dabbled in crypto asset regulation, but prematurely jumped straight to the alternatives, without understanding what was being regulated,” Chalmers said. “The government of Albany is taking a more serious approach to understanding what is in the ecosystem and what risks need to be looked at first.”
Australia Pledges Subtle Approach to Crypto
In December 2021, Chalmers’ predecessor, Treasurer Josh Frydenberg, Pledged to take crypto “out of the shadows” By creating a comprehensive crypto regulatory framework. In May, however, Frydenberg and the rest of Prime Minister Scott Morrison’s government were ousted in a federal election.
The government of Albany now claims that its approach to crypto will be more nuanced, cautious and research-heavy than that of the previous administration.
But its approach may be less novel than it is giving.
Last December, Frydenberg’s Treasury Ministry issued report good On “Transforming Australia’s Payment System” which is committed to completing a uniform token mapping exercise by the end of 2022. The findings gathered from that project, in conjunction with other reports and consultations, were to inform a crypto regulatory framework established the following years.
According to today’s statement, the Albany government’s token mapping project will “identify notable gaps in the regulatory framework, work in progress on the licensing framework, review innovative organizational structures, look into custody obligations for third-party custodians of crypto assets, and provide additional consumer protection measures.,
According to the Treasury Ministry, a public consultation paper outlining the token mapping process will be issued soon.
However, a timeline remains unclear as to when the Albany government plans to convert its findings from that exercise into law.
When asked for further clarity, the Treasury did not immediately respond to a request for comment.