Australia Treasury Official Shares Important Update about Australia Token Mapping

In a recent discussion, an Australian Treasure assistant secretary disclosed the approach which the country’s token mapping exercise will take. 

Trevor Power made these statements to the online crypto news site Cointelegraph during the just commenced Australian Blockchain Week slated for June 26 to 30. 

Power told the representatives that the token mapping would utilize a “principles-based” and “tech agnostic” approach in its crypto assets definitions. 

Trevor Explains the Unique Approach and Why

On August 22, 2022, the Australian government announced plans for a token mapping exercise to help it develop an appropriate and encompassing regulatory framework for its cryptocurrency industry. 

While speaking about it, Power’s revealed that the mapping structure will classify crypto assets based on their functions and purposes. 

Power said, “The token mapping paper spends a lot of time talking about the token, the system, the value delivered for the very purpose of trying to structure whatever regulation such that it draws on those principles so then a token can be placed within that.”

Also, Power revealed that crypto legislation might come out anytime in 2024, but the time will solely depend on the Australian lawmakers. 

But he pointed out that evolving digital assets may be reviewed, and “if they become very significant, then they will graduate through the regulatory system.”

So, there should be a robust token mapping regulation to accommodate the changes that will likely occur in some crypto assets.   

Australia’s Token Mapping Exercise, Still Maintains its Focus Amid Recent Regulatory Issues, Power

According to the August 2022 announcement, the token mapping exercise will enable the Australian government to understand how its existing financial regulations and the crypto industry interact to inform its “future policy choices.”

Also, the government had disclosed that stakeholders would participate in the framework by sending feedback to the regulators about it. 

That way, they can jointly realize “a fact-based, consumer conscious and innovation-friendly approach to policy development.”

During the interaction with the news outlet, Powell said the Australian Government token mapping approach still stands. The recent regulatory enforcement against the crypto industry by the US SEC recent hasn’t influenced the exercise. 

Instead, a crypto framework similar to the European Union’s Markets in Crypto Assets (MiCA) regulation is possible. Power suggested that crypto firms in the US and other parts of the world should consider Australia as a place to operate. 

But they need to comply with the crypto mapping framework, which he says aims to balance consumer protection and innovation. 

Power believes that “there are two arms to every component of regulation. One is to make sure that that framework is there, and the second one is to make sure there’s room for the industry to grow and be innovative.”