• The Australian Treasury is developing a “tech agnostic” and “principles-based” approach to token mapping digital assets.
• Crypto assets that change their function and utility over time will likely be subject to review.
• The token mapping exercise hopes to fall closer on the “spectrum” to the EU’s MiCA regulation than the current regulatory position in the United States.
Australian Treasury Developing Token Mapping Framework
The Australian Treasury is developing a framework for token mapping digital assets called “tech agnostic” and “principles-based”. This means that tokens can be classified based on their function and purpose, instead of being limited by technology or specific tokens. Trevor Power, an assistant secretary at the Australian Treasury, said that crypto-specific legislation may appear sometime in 2024 depending on how it’s received by lawmakers.
Changes to Crypto Assets Reviewed
Power also mentioned that any changes made to crypto assets over time may be subject to review, especially if they become extremely significant. He stated that the framework needs to operate in a manner which takes into account these changes – both tech neutral and principles-based – in order for it to remain effective.
Comparing Regulatory Frameworks
In comparison with other countries’ regulatory frameworks, Power hopes that Australia’s will fall closer on the “spectrum” to Europe’s MiCA regulation than currently seen in the United States. He also welcomed U.S.-based digital asset firms considering Australia as a market – provided they abide by the token mapping framework which intends to strike a balance between innovation and consumer protection.
Token Mapping Essential for Interaction With Existing Regulatory Frameworks
The Australian Treasury considers token mapping essential for understanding how its cryptocurrency ecosystem interacts with existing financial regulatory frameworks. As such, it has not been influenced by recent enforcement actions taken by the U.S Securities Exchange Commission (SEC).
In conclusion, Australia’s token mapping framework seeks to provide a balance between innovation and consumer protection through its tech agnostic and principles-based approach whilst falling closer on the spectrum towards Europe’s MiCA regulation than that of America’s current position. It is an essential tool for understanding how cryptocurrency ecosystems interact with existing financial regulatory frameworks so as not be swayed by recent enforcement actions taken by SEC or other countries’ regulations going forward.