Australia’s Government Discloses its Approach to Crypto Regulation
- Australia is fast growing into one of the most crypto-friendly countries.
- Over 1 million Australians have interacted with crypto assets since 2018.
The Australian Labor party ( ALP) has shed light on its plans for the crypto industry months after it was elected into power. The ALP’s Treasurer Jim Chalmers revealed plans to commence a “token mapping” exercise before the end of the year. The token mapping was proposed last year in a senate inquiry report on “Australia as a Technology and Financial Center.” Several key players in the crypto industry endorsed the idea but waited to see what stance the ALP would take.
The token mapping will play a huge role in Australia’s regulatory approach to cryptocurrencies. It would help the country create regulatory policies for crypto assets and related services. The token mapping exercise would also serve as a base for future regulatory policies.
As per a Cointelegraph report, the Treasury will later take steps in line with the recommendation in the report, including licensing policies for crypto firms offering non-financial services and developing the necessary structures to ensure customer protection.
The new government headed by Prime Minister Anthony Albanese says it wants to strike a balance in the “largely unregulated” crypto sector in a statement from Treasurer Jim Chalmers, Assistant Treasurer and Minister for Financial Services Stephen Jones, and Assistant Minister for Competition, Charities and Treasury Andrew Leigh.
According to the statement, crypto regulation in Australia is struggling to adapt and keep pace with the evolving crypto sector despite the popularity of digital assets in the country. More than a million taxpayers have reportedly engaged with crypto assets since 2018 till date.
The new administration said it is examing the crypto industry in search of risks to be addressed. The ALP members claimed the previous administration, which was led by the Liberals, had experimented with regulating crypto assets through crypto secondary service providers without adequate understanding of the industry.
The Morrison government, which was defeated in the general election, prioritized establishing trust between crypto investors and exchanges. Notably, the administration announced plans to create a market license regime for crypto exchanges that would enable crypto users in the country to invest safely in crypto assets.
Senator Jane Hume at the time remarked that crypto exchanges would be given an “Australian-made badge of approval” as a sign of verification, which would assure investors of their legitimacy. She said,
Crypto values will go up and down sure as eggs and the government will not be protecting consumers from market volatility — and nor should they. But Australian investors will be sure that if they use a licenced Australian exchange that they can trust that exchange will deliver on its commitments to customers and have appropriate protections.
Australia is fast growing into a favorable jurisdiction for crypto operations. However, crypto users and investors hope to enjoy a good run under the new administration.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
