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Australia will become the first country in the world to \u201ctoken map\u201d the crypto assets sector as the government seeks to protect investors amid an onslaught of advertising. <\/p>\n<\/div>\n
The federal government has announced it will take a fresh look at regulating the sector in consultation with stakeholders on a framework. <\/p>\n
Treasurer Jim Chalmers said the review was about allowing \u201cconsumers to participate in the market while also better protecting them\u201d.<\/p>\n
\u201cAs it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers,\u201d he said. <\/p>\n
\u201cWith the increasingly widespread proliferation of crypto assets- to the extent that crypto advertisements can be seen plastered all over big sporting events \u2013 we need to make sure customers engaging with crypto are adequately informed and protected.\u201d<\/p>\n
In what the government has billed as a world first, Treasury will \u201ctoken map\u201d the Australian crypto market. <\/p>\n
Token mapping is the process of determining the characteristics of all digital tokens available in the country \u2013 from Bitcoin to Dogecoin.<\/p>\n
It will be part of an audit of the crypto ecosystem, which the tax office says more than one million taxpayers have interacted with since 2018. <\/p>\n
\u201cThe aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets and provide additional consumer safeguards,\u201d Dr Chalmers said. <\/p>\n
Earlier this month, the Reserve Bank announced it would trial a digital currency in a \u201cring fenced\u201d pilot. <\/p>\n
A public consultation paper on \u2018token mapping\u2019 will be released soon.<\/p>\n<\/div>\n