Three months after being appointed as Australia's Treasurer, Jim Chalmers and the Australian Labor party (ALP) plan to improve the way Australia's system manages crypto assets and provide more effective protection for users.
Therefore, Jim Chalmers announced the implementation of the "token mapping" exercise which was one of the 12 recommendations in the senate investigation report last year.
The report was welcomed by the industry which has been waiting to see if the ALP government will accept it.
Additionally, the token mapping exercise aims to help identify how crypto assets and related services should be regulated including informing future regulatory decisions.
It is also understood that the Treasury Department will propose several other proposals in the near future as well as a licensing framework for crypto asset service providers dealing in non-financial crypto asset products.
This aims to provide the necessary protection for users' crypto assets and review the decentralized autonomous organization (DAO) structure.
According to the statement of Treasurer Jim Chalmers and his members, a large part of the cryptocurrency sector is unregulated. Accordingly, several tasks should be done to find a balance in accepting new and innovative technologies.
Through the statement of Michael Bacina, partner of Piper Alderman, the token mapping exercise is the most important step in bridging the educational gap between regulators and policy makers to understand what needs to be regulated.
In addition, the token mapping exercise will provide more clarity to crypto investors, help companies develop their own blockchains and provide guidance for digital currency exchanges.
