According to Prime Minister Anthony Albanese, Australia will carry out the cryptocurrency mapping procedure as the first nation. Token mapping entails defining the properties of particular cryptocurrencies, including well-known joke coins like Dogecoin.
A method of defining various kinds of digital assets known as “token mapping” will place them all within the appropriate regulatory framework. The main goal of the token mapping is to categorise tokens that are based on different asset kinds, taking into account both their underlying technology and other attributes. This is especially useful for identifying different asset classifications. Based on the existing rules, the government will be better able to manage the industry and fill up the legal gaps for other asset classes that require specialised legislation.
According to Australia’s Treasury department, a committee already advanced the idea to control the business by strengthening consumer protections the previous year. Binance Coin, Dogecoin, Shiba Inu, and Ethereum were among the most popular coins in Australia, per a poll released in December. A consultation paper on digital assets will soon be released by the government. Regulators will choose particular crypto asset classes, their essential technological components, and underlying software.
Jim Chalmers, the treasurer, has warned that the country’s bitcoin business is still mostly unregulated. Therefore, it is essential to create systems that would enhance investor protection. According to Chalmers, the government will concentrate on defining the rules for third-party custodians. The Reserve Bank of Australia (RBA), the nation’s central bank, announced the beginning of a study project on a central bank digital currency earlier this month. Since 2018, it is expected that over a million Australians have interacted with cryptocurrencies. Token mapping is a significant step in the direction of regulatory clarity.
This followed developments after Australia said in July that they are considering creating its own cryptocurrency to modernise the nation’s financial infrastructure. The Treasurer Josh Frydenberg earlier today unveiled a comprehensive reform strategy, which includes this.
Frydenberg claims that the objective is to maintain the independence of the nation’s payment systems: If we do not update the current framework, Silicon Valley will be in charge of deciding the future of our payments system. Australia also intends to create a thorough regulatory framework for cryptocurrency trading and custody, according to Frydenberg.