Australia Unveils Plans for Crypto Regulations Unlike ‘Anywhere in the World’

Australia’s crypto regulators are trying to go where no government has ever gone before.

At least that’s according to them.

In a statement on Monday, the Australian Treasury announced a multi-stage plan to establish a cryptoregulatory framework that it claims will be more thorough and better informed than those previously established “anywhere else in the world.”

Key to the government’s approach will be a form of market research it calls “token mapping”. Token mapping will allow officials to see and evaluate nuanced trends in Australian crypto markets, to best “identify how cryptoassets and related services should be regulated.”

Today’s statement by Jim Chalmers, Australia’s Treasurer under Prime Minister Anthony Albanese, emphasized the importance of a comprehensive understanding of crypto markets before drafting regulations.

“The previous government pursued regulation of cryptoassets but jumped prematurely straight to alternatives without first understanding what was being regulated,” Chalmers said. “The Albanian government is taking a more serious approach to find out what is in the ecosystem and what risks need to be looked at first.”

Australia promises a nuanced approach to crypto

In December 2021, Chalmers’ predecessor, treasurer Josh Frydenberg, promised to take crypto “out of the shadows” by creating a comprehensive cryptoregulatory framework. In May, however, Frydenberg and the rest of Prime Minister Scott Morrison’s government were thrown out in a federal election.

The Albanian government now claims that its approach to crypto will be more nuanced, cautious and research-heavy than the previous administration.

But its approach may be less novel than it lets on.

In December last year, Frydenberg’s Ministry of Finance issued a report on “Transforming Australia’s Payments System” committed to completing a similar token mapping exercise by the end of 2022. The findings gathered from that project, in combination with other reports and consultations, were intended to inform a crypto-regulatory framework to be established the following year .

According to today’s statement, the Albanian government’s token mapping project will “identify notable gaps in the regulatory framework, develop work on a licensing framework, review innovative organizational structures, look at custody obligations for third-party custodians of cryptoassets, and provide additional consumer protection.” .“

According to the Treasury Department, a public consultation document further elaborating on the token mapping process will be released soon.

However, a timeline for when the Albanian government plans to turn its findings from that exercise into legislation remains unclear.

When asked for further clarity in this regard, the Treasury did not immediately respond to a request for comment.