Power claimed that the crypto mapping regulation should see daylight in 2024.
Trevor Power, an assistant secretary at the Australian Treasury, revealed the country's intention to embrace a "tech agnostic" and "principles-oriented" approach for crypto mapping.
The token mapping framework aims to find a balance between fostering innovation and ensuring consumer protection.
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Power shared the insights during the Australian Blockchain Week on June 26th, explaining that the developed structure aims to enable a straightforward classification of tokens, hinging on their primary function and application.
The token mapping paper spends a lot of time talking about the token, the system, the value delivered for the very purpose of trying to structure whatever regulation such that it draws on those principles so then a token can be placed within that.
With regard to the timing for crypto-specific laws, Power claimed that while it could be realistic to expect them by 2024, their launch would largely depend on the receptiveness of Australian legislators.
According to Power, digital assets that change their function and utility over time may be flagged for reevaluation. He observed:
If they become very significant <...> Then they will graduate through the regulatory system.
To cater to such developments, Power stressed that the token mapping regulation needs to be "robust," maintaining its "tech-neutral" and "principles-based" nature.
Recognizing token mapping as a crucial component of understanding the crypto ecosystem's interactions with existing financial regulatory frameworks in Australia, the Treasury encourages the practice.
Interestingly, Power pointed out that the United States Securities Exchange Commission's recent regulatory enforcement actions had not influenced its token mapping efforts.
Instead, Power claimed that Australian regulators prefer a crypto regulatory model closer to the European Union's Markets in Crypto Assets (MiCA) rules.
The Australian Treasury held a consultation process spanning from February 3rd to March 3rd, which came over half a year after the introduction of the token mapping framework on August 22nd.
Australia's proposed "tech agnostic" approach to digital asset classification offers a new perspective on navigating the complex world of crypto regulation, emphasizing both innovation and consumer safety.
