Australia to define crypto in ‘Token Mapping’ exercise

In Australia, the Labor government will this year carry out what it says is a world-first “token mapping” exercise – an attempt to define the different types of digital assets and bring them under an appropriate regulatory framework.

Plans for regulation and consumer protection were set by a committee last year, the country’s finance department said in a joint statement on Sunday.

It is the first time Australia’s new Labor government has expressed intentions to regulate cryptocurrency for the first time since winning three months ago.

The exercise will inform new rules on digital assets while trying to shield consumers from extreme market volatility and educate them about potential pitfalls.

The department alluded to crypto advertising, “plastered over major sporting events,” as inspiring its intentions to move forward with regulation.

Crypto.com signed a sponsorship deal with the Australian Football League worth $25 million in January, while Swyftx, a domestic exchange, signed a three-year deal for an undisclosed sum in February.

In both cases, the agreements allow for crypto ads to be shown in sports arenas and on television across the country. “As it stands, the crypto sector is largely unregulated and we need to do some work to get the balance right,” the department said.

A formal licensing regime for businesses with digital assets and custody obligations for third parties will form part of the reform overhaul, according to the Ministry of Finance.

Australian crypto industry sees hope in ‘token mapping’

Token mapping formed part of a recommendation by the “Australia as a Technology and Financial Center Senate Select Committee” last year, chaired by a Liberal minister.

As part of that hearing, the bipartisan committee heard how Australian businesses were denied banking services because of their association with the nascent asset class.

It also found that the country had a fragmented approach to digital assets, including taxation.

“Additional benefits of token mapping are many,” said Caroline Bowler, CEO of major Australian crypto exchange BTC Markets in a statement to Blockworks.

Bowler added: “It will provide greater clarity to crypto investors; help companies develop their own blockchain-based innovations; provide guidance to digital currency exchanges; as well as assist regulators in designing an appropriate regulatory regime.”

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