The Treasury Assistant Secretary Trevor Power indicated that the country’s token mapping framework would lean closer to the spectrum adopted in the EU. The Treasury official indicated that Australia would likely embrace the tech-agnostic spectrum adopted by the EU member states in the Markets in Crypto Assets (MiCA).
Australia Prioritizes Principle-Based Token Mapping
Power clarified that token mapping in Australia would take a contrasting spectrum to that adopted by the United States. The First Assistant Secretary affirmed that Australia would utilize the principles-based token mapping in the crypto assets definition.
During the ongoing Australian Blockchain Week, Power stated that the framework would prioritize a structure that quickly classifies the tokens relative to their respective purpose and function.
Power revisited the token mapping process previously thought to plunge the Aussie crypto space into chaos. He lauded the current version of the token mapping paper as accommodative by allocating significant focus toward the token. He observed that the paper emphasizes system and value delivered deep into the regulator structure, ensuring that it draws the principles to classify the tokens.
Australia Embraces Tech Neutrality with Token-Specific Postponed to Future Consideration
Power emphasized that the token mapping approach adopted by Australia leans towards tech agnostic and away from the token-specific label. He admitted the need to reasonably assume that Australia may embrace crypto-specific legislation later in 2024. Nonetheless, he perceives that considering crypto-specific legislation would rely upon its reception by Australian lawmakers.
Power acknowledged the possibility of digital assets changing functions and utility. The possibility of such changes obligates subjecting the crypto assets to review. He revealed that crypto assets that become significant in their utility and functions would graduate on the basis outlined in the regulatory system. The process mandates deploying the robust token mapping regulation considered by Australia. Such will involve integrating tech neutral with principles-based mechanisms to guarantee that such changes remain accountable.
MiCA Template Surfaces in Australia’s Token Mapping
The treasury holds token mapping, a critical process as it constitutes the basis of understanding how the digital assets ecosystem would interact with the financial regulatory framework applied in Australia.
Power downplayed the likelihood of Australia’s token mapping exercise referencing the regulatory enforcement actions deployed by the US Securities Exchange Commission (SEC). Instead, the intended crypto framework leans towards the principle-based template adopted in the European Union’s MiCA regulation.
Power supported the emphasis on avoiding rushed token mapping as it could later hurt the Aussie crypto space. He indicated that the one-month consultation process occurred in early February this year, six months after the introduction of the token mapping framework in August 2022. He instead lauded the token mapping framework process as one geared towards striking the balance of nurturing innovation and guaranteeing consumer protection.
Foreign Crypto Firms Should Comply with the Token Mapping Framework
Power observed that crypto firms are pursuing opportunities beyond the US jurisdiction, citing the uncertainty of the US crypto assets environment. The Treasury Assistant invited foreign digital asset firms to embrace opportunities in the Australian market.
Power urged the firms to comply with the token mapping framework designed to nurture innovation and protect consumers. He revisited the design adopted in the token mapping framework by observing the existence of two-arm components. Typically, one arm ensures the existence of the framework, while the second aims to guarantee room for crypto industry growth and innovativeness.
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