Australia opens crypto token mapping consultation
Today the Australian government Treasury opened a one month consultation on token mapping. Once it has completed the token mapping process, it expects to proceed to crypto licensing and custody legislation in the first half of this year. The Australian approach is significantly different compared to other jurisdictions, makes a lot of sense, and is rather thoughtful.
The way Australia regulates financial activities differs from countries that exhaustively list types of financial products. Instead, it focuses on functions. Hence, existing Australian regulations already cover some crypto activities. However, its financial legislation is based on the concepts of ‘promises, intermediaries, and agents’. And many crypto activities don’t fit neatly into those parameters.