In August 2022, the government of Australian Prime Minister Anthony Albanese made an important announcement. He had talked about a move the authorities will put in place to better regulate the crypto sector in Australia. The approach was to adopt a more serious approach to determining what is in the ecosystem “. It also aimed to determine which risks should be considered first “. 6 months after the announcement, Australia publishes a document that suggests crypto regulatory work is moving forward.
Australia to Unveil New Crypto Regulations in 2023
Last December, Australia announced stricter regulations for the crypto sector, starting in 2023. The country is now working to put in place an appropriate regulatory framework which it intends to unveil this year. To this effect, the Australian government has released a token mapping consultation paper. Stakeholders have until March 2, 2023 to provide answers to the document.
The document in question states:Token mapping is the process of identifying key product activities and functions in the crypto ecosystem and mapping them to existing regulatory frameworks“. Angela Ang, senior policy adviser at blockchain intelligence firm TRM Labs, responded to the matter.
Indeed, the former regulator of the Monetary Authority of Singapore said : “Australia’s token mapping exercise is the first of its kind by a national government, going back to first principles for understanding crypto and mapping it to an existing regulatory framework“.
Australia’s plan to regulate crypto
The Australian government’s consultation paper lays out plans to regulate crypto. He indicated that the authorities intend to publish another consultation document which should be available in the middle of the year. The document in question will propose an authorization and custody framework for crypto service providers.
The forthcoming consultation document has two main objectives. On the one hand, it will determine the appropriate operational obligations and standards for crypto service providers. On the other hand, it will identify how these providers will retain their customers’ assets.
While working on crypto sector regulation, Australia is working to launch its CBDC pilot this year. At the same time, two major Australian banks are planning to develop a stablecoin.
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