Australia has recently unveiled a consultation paper on token mapping, further cementing its commitment to regulating the crypto space. This move is set to pave the way for revealing an official framework by 2023. which will outline laws and regulations regarding the usage of digital assets in the country.
According to experienced professionals, this proactive approach reflects Australia’s preparedness to embrace the digital economy while also safeguarding investors from malicious activities. It shows that they are cognizant of the diverse potentials associated with cryptocurrencies and blockchain technology, hence their decision to develop a regulatory regime tailored towards them. An apt illustration of how ‘blockchain’ technology can benefit different areas is seen through NFTs (Non-fungible tokens), which have revolutionized art collecting, gaming, and sports memorabilia.
The administration is aiming to push forward with a separate consultation paper suggesting a licensing and custody framework for crypto asset service providers, slated for mid-2023 as it is a crucial step after token mapping.
Why is Australia Unveiling Crypto Rule Framework?
Australia’s decision to tighten safety and introduce a framework for the licensing and regulation of crypto service providers in 2023. was a direct result of the tumultuous events of 2022, when the country faced its own Crypto virus alongside the catastrophic FTX fall.
Although the authorities had already been aware of their worries surrounding Sam Bankman-Fried’s company, they were forced into damage control mode as the situation began to spiral out of control.