Trevor Power, an Australian Treasury Assistant Secretary, recently unveiled a strategy for the country’s token mapping initiative, outlining the approach that will be taken to classify and define digital assets.
Power noted that the token mapping initiative seeks to develop a legislative framework that adheres to the values of justice, transparency, and stability while also accommodating the distinct features and functionalities of various tokens.
A Focus on Function and Purpose
One of the key elements of the strategy outlined by Power is the adoption of a “tech agnostic” approach. This means that the classification framework will not favor any particular technology or platform. Notably, this approach recognizes that the blockchain and crypto asset ecosystem is diverse, with various underlying technologies and platforms.
Aside from being technology agnostic, Power also revealed a “principles-based” approach to token mapping. This indicates that the framework will be based on basic concepts and ideals rather than technical requirements alone. Fairness, openness, and stability in the cryptocurrency market will be among the cornerstones.
Proposed Timeline for Crypto Regulations
Although the exact timeframe for new cryptocurrency laws in Australia is dependent on the response and reception of Australia’s lawmakers, Power stated that crypto-specific legislation is expected to be introduced in 2024. Remarkably, Power’s statements align with an earlier report, revealing that new laws would take more than a year to finalize.
Power went on to say crypto assets which undergo changes in function and utility over time are likely to be subjected to review. By subjecting such assets to periodic reviews, regulators can ensure that the regulatory framework remains relevant and effective in addressing emerging risks and challenges.
Token Mapping Influenced by Regulatory Needs
In addition, Power highlighted that the Treasury’s token mapping exercise was guided by its own assessment of the local market and regulatory needs rather than recent SEC regulatory enforcement activities. Power expressed a desire for Australia’s crypto framework to align more closely with the European Union’s Markets in Crypto Assets (MiCA) regulation.
Furthermore, the Australian Treasury Official, extended a welcoming message to digital asset firms from the United States and abroad, encouraging them to consider the Australian market. However, Power emphasized that firms must adhere to the token mapping framework established by the Treasury.