Australia's Ministry Of Finance Adopts "Technology-Agnostic" Approach In Mapping Digital Asset Tokens

The Treasury Department considers token mapping as important (photo: dock. pexels)

JAKARTA - Australia's Ministry of Finance will adopt a "technology-agnostic" and "principles-based" approach in mapping digital asset tokens to define crypto assets. This was said by Ministry of Finance officials. Trevor Power, Assistant Secretary of the Australian Ministry of Finance, told Cointelegraph on June 26 at the Australian Blockchain Week event.

He also said that the framework would be designed to easily classify tokens based on their functions and objectives.

"In this token mapping document, a lot of time is used to talk about tokens, systems, and values submitted for the purpose of trying to build regulations in such a way that it refers to these principles so that tokens can be placed in them," Power said. "He's trying to be a technology-agnostic. He's not trying to be specific to tokens."

Power said it was "stature to assume" that crypto-specific laws would appear at a time in 2024 - but it ultimately depends on how policymakers in Australia respond.

Crypto assets that change their functions and utilities over time are likely to be subject of review, according to Power.

"If they become very significant [...] then they will advance to class through the regulatory system," Power added.

Power stressed that the regulation of mapping these tokens must be "strong" in order to operate "neutrally against technology" and "principles-based" to consider such changes.

The Treasury Department considers token mapping as an important thing to understand how the crypto ecosystem interacts with the existing financial regulatory framework in Australia.

Power said that this token mapping exercise was not influenced by recent regulatory law enforcement actions by the United States Securities Exchange Commission.

Instead, Power hopes that the crypto framework will be closer to EU regulations on the Crypto Asset Market (MiCA).

Power also welcomes digital asset companies from the United States and abroad to consider the Australian market - provided they comply with the token mapping framework, aiming to find a balance between innovation and consumer protection.

"There are two sides to each component of regulation. One of them is to ensure that the framework exists, and the second is to ensure there is room for industry to grow and innovate."

The Treasury Department has conducted a consultation process between February 3 and March 3, which was carried out about six months after the token mapping framework was introduced on August 22.