Australia is starting to examine its domestic cryptocurrency holdings to better understand and regulate the sector.
The industry, which was eager to see if the ALP administration would accept the report, has warmly welcomed it.In addition to reviewing organizational structures and looking at the custody responsibilities for third-party custodians of cryptocurrency assets, Chalmers said the future Labor administration would first examine any holes in Australia’s regulatory and licensing frameworks. Additionally, it would consider additional consumer protections.
The Treasury will work on the following recommendations shortly – A licensing framework for crypto-asset service providers dealing in non-financial product crypto-assets, appropriate requirements to safeguard consumer crypto-asset custody, and a review of the decentralized autonomous organization company-style structure.
According to the ministers, this project “hasn’t been done anywhere else in the world, therefore it will make Australia leaders in this work.” In fact, the Treasury’s token mapping will help define how crypto-assets and services should be regulated.