Regulatory policies will assist the crypto market, irrespective of the region it enters. The Albanese government has announced steps in that direction by implementing a multi-stage approach with the core objective of protecting customers and positioning the country’s economy in a better place.
The need for this development arises as a result of some crypto companies leaving their customers exposed. While the previous government could not keep up with the pace of the changes, the new government has shown its commitment to immediately rectify all that has been done.
There are a total of three elements to the multi-stage reform. These are:
- Taking action to strengthen enforcement
- Protecting customers from the risks
- Implementing a framework to accelerate reform in the crypto industry
Enforcement action will be taken, provided the crypto offered cannot meet the Australian customers’ obligations. The two committees that have stepped up to the occasion are:
- ASIC
- ACCC
The ASIC (Australian Securities & Investments Commission) has announced plans to expand its crypto team so that more measures can be taken and implemented successfully. This is the right call considering that the crypto market is expanding faster than ever. The ACCC (Australian Competition and Consumer Commission), on the other hand, will work to prevent scams and frauds that involve crypto assets.
Consumer protection will be taken up by clearly drafting certain standards for obligations and operations. The aim is to ensure that the crypto providers safely keep the assets. Assuming the crypto ventures thoroughly follow the standards, it will help consumers stay protected from potential business failures and/or the misuse of the funds.
The framework to be established is expected to largely revolve around token mapping, a concept that most of the best crypto exchanges in Australia must understand as it is the foundational step towards the crypto sector.
Token mapping aims to gain an understanding of how regulations are being applied to crypto ventures. It will further report regulatory gaps, if any, for improvement. This will primarily help to frame future policies. The Treasury of the Australian Government has announced that all stakeholders can come forward to contribute by sharing their feedback.
The last date to submit the feedback to the Treasury is March 3, 2023.
While some of the most advanced measures will take time to implement, the government in Australia is attempting to do its best to protect the customers by working methodically with all the concerned parties, like regulators, industry, and customers. The overall objective is to understand the risks and opportunities of the crypto industry so that customers can be protected and the economy can be placed in the best spot for development.
It should be noted that responses to token mapping can be addressed to the Australian Government’s Treasury through email or by post.
