The Australian Treasury will take a “tech agnostic” and “principles-based” approach to token mapping in order to define crypto assets, according to Trevor Power, an Australian Treasury assistant secretary. The framework will be designed to easily classify tokens based on their function and purpose. It aims to be tech-neutral and adaptable to changes in the crypto ecosystem.

Power also mentioned that it is likely that crypto-specific legislation will be introduced in Australia by 2024. The regulation will need to be “robust” to account for tokens that change their function and utility over time. Power hopes that the framework will align with the European Union’s Markets in Crypto Assets (MiCA) regulation.

The token mapping exercise conducted by the Treasury is essential to understanding how the crypto ecosystem interacts with Australia’s existing financial regulatory frameworks. Power emphasized that the framework aims to strike a balance between innovation and consumer protection. He invited US and foreign digital asset firms to consider the Australian market, provided they adhere to the token mapping framework.

FAQs

What is token mapping?

Token mapping is the process of defining and classifying crypto assets based on their function and purpose. It helps regulators understand the nature of different tokens in order to develop appropriate regulations.

What is a “tech agnostic” approach?

A “tech agnostic” approach means that the framework does not favor any particular technology and is designed to be adaptable to changes and developments in the crypto ecosystem. It focuses on principles rather than specific tokens.

When will crypto-specific legislation be introduced in Australia?

According to Trevor Power, it is expected that crypto-specific legislation will be introduced in Australia by 2024. However, the timing ultimately depends on how it is received by Australia’s lawmakers.