Australia Traiblazes With New Crypto Regulations.

These rules are different from anywhere else

A new multi-step plan to regulate crypto through a new regulatory framework has been introduced in a new statement this past Monday by the Australian Treasury. 

The statement states how the Albanese Government plans to improve upon the Australian crypto regulatory system. In the announcement it was stated that the Australian Taxation Office estimated more than a million of the taxpayers of the country are involved somewhat in crypto. 

The announcement states new regulations are being created in order to safeguard consumers in a currently unregulated sector of finance.In a world where even sporting events are proudly waving crypto advertisements in the faces of the crowd, adequate information and protections need to be in place.

Consultation with stakeholders is one of the main focuses of the announcement which would see a framework for industry and regulators be formulated.  The new framework announced has been touted as being more thorough and better informed than “anywhere else in the world” The plan is to use a new form of research known as “token mapping.

 This method will be used to aid in identification of crypto assets and how how those assets and services related to those assets can and should be regulated. The new “token mapping” is new and has not been done anywhere, According to the announcement, this will make Australia a pioneer in the crypto community and “leaders in this work.”

In Token mapping officials will be made privy to nuanced trends within the crypto markets of the country. The statement was made by Jim Chalmers who is the Treasurer of Australia under Prime Minister Albanese. Chalmers stressed the importance of complete understanding of the crypto market in order to better decide on regulations. 

Chalmers stated the previous administration just jumped into crypto without full knowledge of the sector and that the government headed by Albanese is more serious in an approach to the the risks and benefits of the ecosystem. 

In December of 2021 previous treasurer Frydenberg pledge taking crypto “out of the shadows” and offering a comprehensive regulator framework for crypto, this was before he was ousted in May. The government headed by Prime Minister Albanese wants to take a more cautious and detailed approach to the situation that depends on very thorough research. 

Information on the public consultation further discussions the token mapping process will be released soon but a definitive timeline for turning in findings has yet to be made clear and the Treasury has yet to immediately give a comment to any reporting parties.

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