Australian Treasury Takes “Tech Agnostic” Approach to Mapping Digital Assets
The Australian Treasury will be taking a “tech agnostic” and “principles-based” approach to mapping digital assets in order to classify crypto assets, according to a Treasury representative.
At the Australian Blockchain Week on June 26, Trevor Power, an Assistant Secretary from the Australian Treasury, told Cointelegraph that the framework will be designed to categorize tokens in accordance with their “function” and “purpose”.
Power stated that the token mapping paper discussed the token, the system, and the value delivered extensively in order to create a regulatory framework which would enable the placement of a token within it.
Power suggested that it is reasonable to anticipate legislation concerning crypto will likely be introduced in 2024 – however, it all depends on how it will be viewed by Australia’s legislators.
Power has indicated that crypto assets that evolve in their purpose and usage over time will likely be scrutinized.
Token Mapping Regulation Must Be Strong to Take into Consideration Alterations
He emphasized that the token mapping regulation must be strong in order to work in a tech-neutral and principles-based way to take into consideration such alterations.
The Treasury deems token mapping to be vital in order to comprehend how the crypto sphere interfaces with Australia’s current financial regulatory systems.
Power asserted that the token mapping process had not been affected by the SEC’s recent series of regulatory enforcement actions.
Rather than this, Power hopes that a crypto framework will be more in line with the European Union’s Markets in Crypto Assets (MiCA) regulation on the “spectrum”.
Rushing the process of token mapping could have a negative effect on the Australian cryptocurrency industry, according to Finder founder.
Power also encouraged U.S. and international digital asset companies to contemplate the Australian market – so long as they comply with the token mapping framework, which is designed to achieve a balance between innovation and consumer protection.
Between February 3rd and March 3rd, the Treasury held a consultation period, which was about half a year after the token mapping framework was released on August 22nd.
Magazine: The Dangers of Unstablecoins: Depegging, Bank Runs, and More.
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