Australia to pioneer ‘Token Mapping’ as framework for crypto regulation

Australia will be the first country to push ahead with a “token mapping” exercise to try to define the different types of digital assets and bring them into a regulatory framework.

The country’s Treasury Ministry expressed concern over crypto ads being “pasted all over major sporting events” in a joint statement released yesterday, inspiring its intentions to push regulation.

This exercise will outline new rules for digital assets to protect and educate consumers about extreme market volatility and the potential pitfalls of crypto investing.

“Protect consumers”

The Australian Treasurer Dr. Jim Chalmers MP said: “As it stands, the crypto sector is largely unregulated and we need to do some work to find the right balance so that we can embrace new and innovative technologies while protecting consumers.”

“As crypto assets become more prevalent – ​​to the extent that crypto ads are ubiquitous at major sporting events – we need to ensure customers engaging with crypto are properly informed and protected.”

Legal framework

The Australian Taxation Office estimates that more than a million taxpayers have interacted with the crypto asset ecosystem since 2018.

Therefore, the government is ready to start consultations with stakeholders to develop a framework for industry and regulators alike.

Chalmers added: “The aim will be to identify notable gaps in the regulatory framework, to advance work on a licensing framework, to review innovative organizational structures, to examine custody requirements for third-party crypto-asset custodians and to provide additional consumer protection measures.”

The department will release a public consultation paper on token mapping before the exercise goes into effect.

Crypto advertising in sports

Earlier this year, signed a $25 million sponsorship deal with the Australian Football League (AFL).

Subsequently, Swyftx, a domestic exchange, also signed a three-year deal in February for an undisclosed sum.

In both cases, the deals allow crypto ads to run in sports arenas and on television across the country.

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