Treasury official says Australia’s token mapping is ‘technology agnostic’

The Australian Treasury’s token mapping of digital assets will take a “technology agnostic” and “principles-based” approach to defining crypto assets, according to a Treasury official.

Speaking to Cointelegraph at Australian Blockchain Week on June 26, Australian Treasury Assistant Secretary Trevor Power said the framework would be structured to more easily classify tokens based on their “function” and “purpose”.

“The token mapping paper spends a lot of time talking about tokens, systems, given value, trying to structure any regulation based on those principles to allow tokens to be placed within it,” Powers adding:

“It’s trying to be technology agnostic. It’s not trying to be token specific.”

Power said it is “fair to assume” that crypto-specific legislation will emerge sometime in 2024 — but that ultimately depends on how it is received by Australia’s lawmakers.

According to Power, crypto assets that change their function and utility over time will likely be subject to review.

“If they become very significant (…) they will graduate through the regulatory system.”

He emphasized that token mapping regulation would need to be “robust” in order to take such changes into account and operate in a “tech-neutral” and “principles-based way”.

Treasury think over token mapping required Understand How the crypto ecosystem interacts with Australia’s existing financial regulatory framework.

Power said that the token mapping exercise has not been affected by the recent parade of regulatory enforcement action by the United States Securities Exchange Commission (SEC).

Instead, Power hopes that a single crypto framework for crypto assets (MICA) regulation will come closer to the “spectrum” of EU markets.

Connected: Rushing into ‘token mapping’ could hurt Australian crypto space – Finder founder

Power also welcomed US and foreign digital asset firms to consider the Australian market – provided they adhere to the token mapping framework, which aims to strike a balance between innovation and consumer protection:

“Each component of regulation has two arms. One is to ensure that that framework is in place, and the other is to ensure that the industry has room to grow and innovate.

The Treasury held a consultation process between February 3 and March 3, nearly six months after the token mapping framework was introduced on August 22.

Consultation open! Today we released the Token Mapping Consultation Paper. This consultation is part of a multi-phased reform agenda to develop an appropriate regulatory setting #crypto Area. Read the paper and submit views @ @ASIC_connect @austrack pic.twitter.com/OGHuZEGvDp

– Australian Treasury (@Treasure_AU) 2 February 2023

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