Australia will begin a review of how crypto assets are managed, with a view toward keeping practices up to date and protecting consumers, CoinDesk has revealed.
The review was revealed by Australian Treasurer Jim Chalmers in a statement released earlier this week.
Chalmers said, “Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt with the crypto asset sector. As the first step in a reform agenda, Treasury will prioritize ‘token mapping’ work in 2022, which will help identify how crypto assets and related services should be regulated. This hasn’t been done anywhere else in the world, so it will make Australia leaders in this work.”
Token mapping involves uncovering the characteristics of all digital asset tokens in Austraia including charting the type of crypto asset, its underlying code and any other defining technological feature.
Chalmers added, “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,” Chalmers said.
“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.”
Chalmers said that before “token mapping” is completed, the government will release a consultation paper with the sector about a regulatory framework.
The Treasurer said the “previous government dabbled in crypto asset regulation but prematurely jumped straight to options without first understanding what was being regulated.” He also mentioned that the current Albanese government is taking a more serious approach to work out what is in the ecosystem and what risks need to be looked at first.
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