Australia’s cryptocurrency regulators are seeking to venture into uncharted territory.
At least, that’s how they see it.
The Australian Treasury launched a multi-step plan on Monday to create a framework for regulating cryptocurrencies that it believes will be more detailed and informed than those now in place “anywhere else in the world.”
Token mapping, a type of market research, will be crucial to the government’s strategy. Token mapping will help regulators better “identify how crypto assets and related services should be regulated” by enabling them to observe and assess subtle patterns in the Australian cryptocurrency marketplaces.
Jim Chalmers, Australia’s Treasurer under Prime Minister Anthony Albanese, stressed in a statement today the significance of thoroughly comprehending the cryptocurrency markets before formulating legislation.
According to Chalmers, “the previous government dabbled in regulating crypto assets but prematurely rushed straight to choices without first knowing what was being controlled.” The Albanese government is examining threats more seriously in order to determine what is in the ecosystem.
Josh Frydenberg, Chalmers’ predecessor as treasurer, promised to bring cryptocurrency “out of the shadows” by establishing a thorough regulatory framework in December 2021. Frydenberg and the remainder of the government of Prime Minister Scott Morrison were, however, defeated in a federal election in May.
The Albanese government currently asserts that its strategy for cryptocurrencies will be more complex, cautious, and reliant on study than that of the previous administration.
However, it may not be as innovative as it seems.
A comparable token mapping operation will be finished by the end of 2022, according to a paper on “Transforming Australia’s Payments System” published by Frydenberg’s Treasury Ministry last December. The information gathered from that initiative, together with other papers and consultations, was intended to guide the creation of a regulatory framework for cryptocurrencies the following year.
The Albanese government’s token mapping project, according to a statement released today, aims to “identify notable gaps in the regulatory framework, advance work on a licensing framework, review innovative organizational structures, look at custody obligations for third party custodians of crypto assets, and provide additional consumer safeguards.”
A public comment paper that elaborates on the token mapping process will soon be made available, according to the Treasury Ministry.
Uncertainty persists regarding the Albanese government’s timetable for enacting laws based on the exercise’s conclusions.
The Treasury did not immediately provide a response to a request for comment after being questioned for more clarification in this regard.