Australia's crypto regulation plan explained
The proposed Australian crypto regulation plan unveils the world's first token mapping of digital assets, ranging from Bitcoin to Dogecoin, as an audit procedure to accelerate the regulatory framework for its crypto ecosystem. Token mapping is the process of determining the characteristics of all available digital tokens in the country.
Australian crypto regulation to implement token mapping
According to Treasurer Jim Chalmers, Australia is seeing increased crypto activities and advertisements. Token mapping will allow the government to identify the characteristics of digital currencies used within the jurisdiction and develop a better regulatory strategy for them.
"As it stands, the crypto sector is largely unregulated- we need to do some work to get the balance right, so we can embrace new and innovative technologies while safeguarding consumers," he stated.
In addition to prioritising token mapping this year, the Australian government plans to review the country's current regulatory and licensing frameworks for service providers. They also intend to review the custody requirements for digital asset custodians to ensure local users' safety.
Jim Chalmers stated: "With the increasingly widespread proliferation of crypto ¬assets- to the extent that crypto advertisements can be seen plastered all over big sporting events- we need to make sure customers engaging with crypto are adequately informed and protected."
Cryptocurrency adoption in Australia
Australia is one of the crypto-friendly jurisdictions where the adoption and ownership of digital assets has been skyrocketing. Digital currency adoption in the country increased by more than 56% between 2022 and 2021, according to a Banklesstimes report. According to a Finder.com report, more than 22% of Australians own digital currency, which is higher than the global average of 15%.
Australia's central bank launched a one-year pilot programme for its digital currency earlier this month to assess the business benefits and potential drawbacks of launching a CBDC.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.