Authorities in Australia have unveiled plans for crypto regulations. The party in Government, the Australian Labor Party (ALP), confirmed the move through its treasurer, Jim Chalmers. According to Chalmers, the government intends to devise a “token mapping” strategy to regulate cryptos in Australia. The treasurer added that the strategy would be deployed before the end of 2022.
The strategy received massive endorsement earlier during the submission of a senate inquiry report on “Australia as a Technology and Financial Centre” last year. Its implementation is about to take shape this year.
The Australian government sees the strategy as one which will clearly define a better approach for crypto regulation in the country. According to Chalmers, the government plans to use the strategy as a cornerstone for future crypto regulations.
The government plans to further extract the recommendations in the report to protect customers of crypto firms within the country. Some of the recommendations include licensing policies for crypto firms offering non-financial services and a host of others.
The Prime Minister of Australia, Anthony Albanese, also confirmed the development. According to him, the government aims to create a balance in the “largely unregulated” crypto sphere. The prime minister, in a statement, lamented that crypto regulation in Australia seems to be struggling to stand tall in the dynamic crypto sphere. This, according to him, is obtainable despite the growing adoption of virtual assets in Australia. Albanese, in the statement, said over a million taxpayers in the country usually engage with crypto assets from 2018 to 2022.
The government says it is assessing every area of the crypto sector to identify and address its risks. The prime minister criticized the previous government for implementing certain crypto regulation policies without fully understanding the sphere.
According to reports, the previous administration initially commenced a licensing regime for crypto exchanges. The then government believed such a move could build mutual trust and relationships between crypto investors and exchanges.
The licensing regime also ensured crypto users invest safely in crypto assets. A member of the previous administration, Senator Jane Hume, was then quoted saying that crypto exchanges would be given an “Australian-made badge of approval.” This, according to Hume, will function as a verification sign for investors to realize the legitimacy of the firms.
The new administration in the country plans to discard the policy, saying it does not reflect the dynamism of the crypto sphere. However, with a new strategy, token mapping, in sight, the crypto space in the country is expected to take a new shape.