In order to get a better understanding of the cryptocurrency niche and determine how best to govern it, Australia has begun to investigate the cryptocurrency assets that are based in the nation.
Users of cryptocurrencies have a responsibility to make sure they are well-informed and safe. This is because crypto assets are becoming increasingly popular, to the point where ads for them are plastered all over major sports events.
As a result, the government of Australia is putting measures into place to guarantee that crypto assets are subject to appropriate regulation to alleviate the concerns of its residents.
The Australian Committee’s Endeavors to Establish Guidelines for Cryptocurrencies
Before the previous administration led by Prime Minister Scott Morrison was defeated in the election held in May, they intended to devise a scheme for regulating and licensing the cryptocurrency business.
Treasurer Jim Chalmers said in a statement on Monday that the government of Prime Minister Anthony Albanese will make “token mapping” a top priority this year to determine which digital asset tokens are being used in Australia and how they ought to be policed. In addition to that, he said that a document for democratic oversight on the issue would be made available very soon.
Chalmers discussed how the newly elected Labor administration in Australia needs to investigate existing regulatory and licensing loopholes. Further, he mentioned that they would also need to carefully investigate the organizational structures and regulations for custody of crypto assets imposed on third-party custodians. Most importantly, they must investigate further avenues for the protection of customers.
However, an Australian parliamentary committee investigating the cryptocurrency industry reported their findings in October 2021. They said that one of the biggest problems with regulating digital currencies was that national and international regulators didn’t have standard definitions and groups.
“The additional benefits of token mapping are many,” said Caroline Bowler, chief executive officer of BTC Markets, in a statement. “It will provide greater clarity to crypto investors; aid companies in developing their own blockchain-based innovations; provide guidance to digital currency exchanges; and assist regulators in shaping an appropriate regulatory regime.”
