Australia to release token mapping consultation paper in early 2023

The Australian government has revealed that the first consultation paper on its proposed crypto token mapping exercise will be released in early 2023, as part of efforts to modernize its financial system. 

Australia modernizes its financial ecosystem 

As part of larger efforts to revamp and modernize its financial ecosystem, strategically position the region to take advantage of new economic opportunities, and more,  the Australian government has lined up a vast array of activities for early 2023. 

It will be recalled that the Prime Minister Albanese-led government first revealed plans to conduct a  crypto token mapping exercise last August, to enable it to categorize and regulate Bitcoin (BTC) and other cryptocurrencies appropriately, amidst increased Web3 adoption in the country.

Per sources close to the latest development, the government will be releasing a consultation paper on its crypto token mapping exercise in early 2023. 

If all goes as planned, the consultation paper will clearly outline the digital assets that fall under the purview of existing financial services laws.

It will also lay the groundwork for the formulation of appropriate cryptocurrency custody and licensing settings, to foster consumer protection in the sector.

After successfully releasing the token mapping paper, the authorities will carry out consultations on a “crypto custody and licensing framework” prior to introducing new laws.

In related news, the Australian government has also revealed plans to tighten crypto sanctions following the collapse of the FTX exchange, to make centralized Bitcoin trading venues in the country safer for consumers.