Many governments have articulated their stances on Cryptocurrency legislation in recent months. Regulating cryptocurrencies, however, has been a low priority for Australia’s government.
Labor has been in power in Australia for three months. Regulating cryptocurrencies has apparently been overlooked by the government until now.
Australian authorities will conduct token mapping.
Jim Chalmers, the Treasurer of Australia, has announced that a trial of “token mapping” will be conducted. This was one of twelve suggestions included in a 2021 Senate report.
The crypto community applauded the report and is now waiting to see if the new administration would implement its recommendations. The token mapping pilot is scheduled for completion by the end of 2022. This would aid in determining how to govern crypto assets and the industries that support them.
It would also pave the way for more stringent rules down the road. Cointelegraph reports that the Australian Treasury plans to investigate further recommendations in the near future.
There will be a system in place to grant licenses to VASPs that sell crypto assets for uses other than finance. The examination of DAOs’ company-like structure is another factor, as is the security of investors’ digital asset custody (decentralized autonomous organizations).
According to Chalmers, the current administration is looking to control the nascent cryptocurrency industry.
“At this time, the cryptocurrency market is unregulated. Chalmers argued that rules should be established first, and then new technology adopted.
A million or more taxpayers have utilized cryptocurrency since 2018, said the Treasurer. Regulators have been slow to catch up to the pace of adoption, which is on the rise.
Others in politics and the stakeholder community discuss the token mapping process.
Other Australian politicians have weighed in on the topic of crypto legislation, including Assistant Treasurer Stephen Jones and Assistant Minister for Competition Andrew Leigh.
They said the prior government didn’t know what it was doing in the crypto industry. Jones admitted that they experimented with governing cryptocurrencies through crypto exchanges and exchanges.
They did, however, point out that the present admin will take the crypto industry’s risks seriously.
As Michael Bacina, a partner at Piper Alderman, explains, the token mapping test is crucial. It could help bring together the two groups now at odds. He argued that crypto regulation was necessary to calm investors and entice new companies to the space.
Also, according to Caroline Bowler, CEO of BTC Markets, this token mapping may help clear things out for crypto investors. In addition, this would help businesses experiment with and implement blockchain-based solutions.
Bowler chimed in that this would aid authorities in developing a sound crypto regulatory framework. However, Dr. Aaron Lane, a senior lecturer at the RMIT Blockchain Innovation Hub, claims that governments use token mapping as a stalling strategy.