The government is set to launch an investigation into how Australian financial regulators handle cryptocurrency assets.
In a joint statement, Treasurer Jim Chalmers, Deputy Treasurer and Minister for Financial Services Stephen Jones, and Deputy Minister for Competition, Charities and the Treasury, Dr Andrew Leigh, pledged that a consultation document on the “token mapping” would be released “soon”.
The token mapping exercise will attempt to “identify notable gaps in the regulatory framework, advance work on a licensing framework, examine innovative organizational structures, examine custodial obligations for third-party custodians of crypto assets and to provide additional safeguards to consumers,” the statement read.
The government noted that cryptocurrencies are largely unregulated at the moment, “and we need to do work to find the right balance so that we can embrace new and innovative technologies while protecting consumers.
“Our government is ready to begin consultations with stakeholders on a framework for industry and regulators that enables consumers to participate in the market while better protecting them,” the statement continued.
Mapping Treasury tokens will help identify how crypto assets and services should be regulated, an exercise which ministers say “has not been done anywhere else in the world, so it will make Australia a leader in this work”.
“The aim will be to identify notable gaps in the regulatory framework, advance work on a licensing framework, review innovative organizational structures, review custodial obligations for third party custodians crypto assets and to provide additional safeguards to consumers,” the statement read.