Aussie Government Prioritises ‘Token Mapping’ for New Regulatory Framework
Australian Government Crypto
Modified Date:- Published Date:-Categories: Cryptocurrency
Aussie GovernmentPrioritises ‘Token Mapping’ for New Regulatory Framework
TheAustralian government has released a statement indicating that it will begin areview as to how digital assets should be managed. This starts with a processit has termed “token mapping”.
What IsToken Mapping?
The processof token mapping is said to entail uncovering the characteristics of alldigital asset tokens, including the different types, their underlyingprotocols, and any other relevant technological features.“As it stands,the crypto sector is largely unregulated, and we need to do some work to getthe balance right so we can embrace new and innovative technologies whilesafeguarding consumers.”
Noting theincreased proliferation of crypto investments to the extent that relatedpromotions are “plastered all over big sporting events”, Chalmersstressed that “we need to make sure customers engaging with crypto areadequately informed and protected”.Prior to the token mapping exercise,government is expected to release a consultation paper with industry regardinga proposed regulatory framework.
Given thewidespread belief among mainstream pundits that most cryptos amount tounregistered securities (including NFTs), the so-called token mapping exercisemay yield at least one positive outcome – that it simply isn’t feasible to havedifferent sets of rules for the traditional and crypto sectors (particularlywith regards to fundraising and disclosures).
Ifgovernment does the work, you’d expect it to find that Bitcoin is best reviewedas a commodity, whereas all the other cryptocurrencies are more accurately seenas companies. Most Bitcoiners aren’t, however, holding their breath.
The Australian government has directed its Digital Transformation Office, which has a responsibility for this process, to review the way that regulators should treat cryptocurrencies. The review will be conducted in collaboration with key stakeholders such as government agencies and industry bodies.