February 21, 2024

The Australian Treasury is developing a token mapping framework for digital assets to be both “technology-agnostic” and “principles-based,” rather than taking a strictly “token-specific” approach. This innovative approach aims to flexibly classify tokens according to their function and purpose.

The purpose of this approach is to Structural regulations Principles around how tokens function, rather than just focusing on specific technologies or tokens.

“The Token Mapping document spends a lot of time discussing the token, the system, and the value delivered, and the intent is to try to frame any rules that draw on those principles so that tokens can be placed within it,” Power noted.

He further emphasized the intent behind this approach, saying: “It’s trying to be technology agnostic. It’s not trying to be a specific coin.”

shape the frame

Power outlined that cryptoassets change their utility and function over time and will therefore be subject to regulatory scrutiny, especially if they become important within the ecosystem.This review will ensure that they “graduate through the regulatory system” accordingly, although previous delay.

He emphasized the importance of creating robust token swap regulation that can function in a “technology-neutral” and “principles-based manner” to fully account for such changes.

influence and acceptance

Powers stressed, Token Mapping Program Not affected by recent regulatory enforcement actions by the SEC.Instead, he hinted that Australia’s crypto framework could be closer to that of the EU Marketplace in Cryptoassets (MiCA) Regulation in its method.

as Australia’s Token Mapping Framework Power welcomes US and foreign digital asset firms to consider the Australian market, claiming that they should align with the Token Swap Framework, which aims to balance innovation and consumer protection:

“Every component of regulation has two sides. One is making sure the framework exists and the other is making sure the industry has room to grow and innovate.”

The Australian Treasury believes that token mapping is critical to understanding how the crypto ecosystem interacts with the country’s existing financial regulatory framework.They had earlier conducted a consultation process, inviting stakeholders to comment on the proposed proposals Token Mapping Framework.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.