The management of bitcoin assets by Australia’s financial authorities will be the subject of a government investigation.
A consultation document on “token mapping” was promised to be released “soon” in a joint statement from Treasurer Jim Chalmers, Assistant Treasurer and Minister for Financial Services Stephen Jones, and Assistant Minister for Competition, Charities and Treasury Dr Andrew Leigh.
In order to “identify notable gaps in the regulatory framework, advance work on a licencing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets, and provide additional consumer safeguards,” the statement said, the token mapping exercise will be conducted.
Currently, there is little regulation of cryptocurrencies, according to the government, and “we need to try to get the balance right so we can embrace new and creative technology while protecting consumers.”
The statement went on to say that “our administration is prepared to begin dialogue with stakeholders on a framework for industry and regulators that allows consumers to participate in the market while also better protecting them.”
According to the ministers, this project “hasn’t been done anywhere else in the world, therefore it will make Australia leaders in this work,” the Treasury’s token mapping will help define how crypto assets and services should be regulated.
The purpose of the study, according to the statement, is to “identify significant gaps in the regulatory framework, advance work on a licencing framework, review novel organisational structures, look at custody obligations for third party custodians of crypto assets, and provide additional consumer safeguards.”
