The consultation document will provide information on frameworks for business licensing, asset custody, and consumer safeguards under token mapping, as well as guidance on how specific crypto assets should be governed.
According to Australian Treasurer Jim Chalmers, the government will publish a consultation document in early 2023 (1) as part of its token mapping exercise. Since the collapse of FTX, Australian regulatory and enforcement authorities have focused more on the crypto industry, and the government has emphasized the need for stronger consumer protection regulations as quickly as feasible. Treasurer Chalmers remarked in a statement on December 14 that the Anthony Albanese-led administration is acting to tighten the regulation of crypto service providers and guarantee extra protections for Australians.
As per Chalmers, the consultation document will address this procedure and frameworks for business licensing, asset custody, and consumer safeguards as part of its previously stated token mapping project. The issuance of a consultation document in early 2023 to help determine whether digital assets should be governed by financial services legislation, as well as the creation of suitable custody and licensing arrangements to protect consumers, are the next stages in the government's ongoing "token mapping" effort.
"The Government will consult on a custody and licensing framework following the release of token mapping before adopting legislation," he stated
The most recent remarks from Chalmers supplement a pledge made by the Treasury in mid-November that it will create and implement a solid legal framework for cryptocurrencies in 2023.
The Government's next steps
The government has set reform regulations on financial market infrastructure, particularly about the clearing system, payments systems, and the Buy Now Pay Later sector of the Australian Securities Exchange (ASX), which is the focus of the government's effort to "modernize Australia's financial system." (2)
The Australian government has generally supported crypto, although it has emphasized the need to foster innovation while ensuring public safety. In a paper on stablecoins released on December 8 by the Reserve Bank of Australia (3), it was claimed that authorities are "undertaking substantial effort" to determine how to integrate them into the ecosystem securely. Stablecoins might be used to improve a variety of payment and other financial services' functionality and efficiency.