The new Canberra executive announced that Australia will conduct a virtual inventory of all cryptocurrency assets owned by citizens. The move is viewed as an indication that the center-left government plans to regulate the country’s crypto space.
Treasury Embarks on ‘Token Mapping’ to Underpin Crypto Regulation in Australia
As part of efforts to adopt rules for the cryptocurrency sector, Australia’s Treasurer Jim Chalmers unveiled on Monday that his department is preparing to conduct “token mapping,” Reuters reported quoting his statement.
This initiative will catalog all digital currencies used in the country. It is seen as an initial step towards determining which assets need regulation and how.
Chalmers noted that Australia would be the first nation to hold crypto assets.
We need to ensure that customers who engage with crypto have adequate information and protection, given the increasing popularity of cryptocurrency assets.
After years of debate on the regulation of bitcoin and other decentralized cryptocurrency, this announcement is finally made. The calls to do this have grown in recent years as a surge in crypto investment was triggered by stimulus payments made during the pandemic.
The adoption of broad-ranging regulations for cryptocurrency owners was recommended by a Senate inquiry under the conservative previous government. The election of May this year resulted however in a center-left cabinet.
The Australian Securities and Investments Commission (ASIC) also insisted recently that the increased popularity of cryptocurrencies makes a “strong case for regulation.” The watchdog cited a survey, according to which 44% of the country’s retail investors held crypto in late 2021.
While refraining from providing specific details on any upcoming rules, Jim Chalmers described the token mapping as “the first step in a reform agenda.” His comments follow a decision by the Australian Taxation Office announced earlier this year to focus on capital gains from crypto assets as one of several priority areas where the authority thinks more efforts are needed to ensure correct reporting.
Are you optimistic that Australia will soon have comprehensive regulation for the cryptocurrency industry? Leave your comments below.
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