The New Government in Australia Has Now Shown its Cryptocurrency Legislation Position

Three months after taking office, the Australian Labor Party (ALP) has announced its approach to cryptocurrency regulation. Jim Chalmers, the Treasurer of Australia, stated that his government will be improving the way Australia’s system manages cryptocurrencies and providing greater security for customers.

Treasurer Jim Chalmers announced a “token mapping” exercise, which was one of the 12 recommendations in last year’s senate inquiry report on “Australia as a Technology and Financial Center.” The report was warmly welcomed by the industry which has been anxiously waiting to see if the ALP government would embrace it.

The token mapping exercise, which is anticipated to be completed before the end of the year, will help “identify how crypto assets and related services should be regulated” and provide information that can guide future regulatory decisions.

The Department of Treasury will also begin working on some of the other suggested reforms in the near future, such as a licensing framework for non-financial product crypto asset service providers and appropriate protection standards for customer crypto asset custody.

The government led by Prime Minister Anthony Albanese stated in a press release on Monday that it wants to rein in a “largely unsupervised” cryptocurrency industry. “The crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies.”

The legislators argued that the previous Liberal-led administration had already “dabbled” in crypto asset regulation through crypto secondary service providers, despite not yet understanding what was being regulated:

“Australia punches above its weight in blockchain right now, but we have seen regulatory uncertainty lead to businesses leaving Australia,” he said.

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