The Australian Treasury’s upcoming strategy for the token mapping of digital assets will embrace a “tech agnostic” and “principles-based” approach. This approach aims to categorize and define crypto assets effectively, as revealed by a top Treasury official.
Delineating the Framework: Trevor Power’s Insight
Trevor Power, an Assistant Secretary at the Australian Treasury, disclosed on June 26 during the Australian Blockchain Week that the impending framework will be engineered to categorize tokens with ease, based on their inherent function and purpose.
The Future of Crypto-Specific Legislation in Australia: What to Expect?
Power intimated that “it’s fair to assume” that legislation specifically addressing crypto assets would make its appearance sometime in 2024. However, he also noted that this timeline is subject to change based on how such legislative proposals are received by Australia’s lawmakers.
The Dynamic Nature of Crypto Assets: A Subject for Review
Power noted that crypto assets, which tend to change their function and utility over time, would likely be subject to continual review in accordance with the regulations that the Treasury aims to enact.
Upholding Robust Regulations to Accommodate Evolution
Power stressed that the token mapping regulation would need to be “robust” and flexible enough to operate in a “tech-neutral” and “principles-based manner.” Such a robust framework will be crucial to account for the constant evolution and changes in the functions of crypto assets.
Understanding the Interplay: Crypto Ecosystem and Existing Financial Regulatory Frameworks
The Treasury acknowledges the essential role of token mapping in understanding how the burgeoning crypto ecosystem interacts with and fits within Australia’s pre-existing financial regulatory frameworks.
Leaning Towards EU’s MiCA Regulation: A Paradigm Shift
Power emphasized his hopes for the Australian crypto framework to fall closer on the “spectrum” to the European Union’s Markets in Crypto Assets (MiCA) regulation, rather than the current regulatory position in the United States.
A Warm Welcome to U.S. and Foreign Digital Asset Firms
Power further extended an invitation to U.S. and foreign digital asset firms to consider entering the Australian market, provided they are prepared to abide by the soon-to-be-released token mapping framework. He expressed his confidence in the framework’s capacity to strike a balance between fostering innovation and safeguarding consumer protection.