• Australian crypto executives have urged caution over treating all digital assets as financial products.
• Assistant Treasurer and Minister for Financial Services Stephen Jones believes that some crypto assets should be treated like a financial product.
• The government is on track to determine which crypto assets to regulate through their “token mapping” exercise this year.
Crypto assets have become a hot topic as of late, with the Australian government looking to figure out just how to regulate them. Assistant Treasurer and Minister for Financial Services Stephen Jones recently gave an overview of the state of crypto regulation in the country in an interview with the Sydney Morning Herald.
Jones expressed that the government is currently in the process of a “token mapping” exercise to determine which crypto assets to regulate. This year, the government will be engaging in a consultation process with the industry to get their input on the matter. Jones stated that he was “not that attracted” to setting up a completely new set of regulations for something that he believes to be a financial product.
“I don’t want to pre-judge the outcomes of the consultation process we are about to embark on. But I start from the position that if it looks like a duck, walks like a duck and sounds like a duck then it should be treated like one,” said Jones. “Other coins or other tokens are being essentially used as a store of value for investment and speculation. [There is a] good argument that they should be treated like a financial product.”
However, Australian crypto executives have urged caution over lumping all digital assets in the same boat as financial products. This is due to the fact that digital assets are still relatively new and the government should not make any hasty decisions when it comes to their regulation. It is important to keep in mind that the industry is still in its infancy and more research needs to be done in order to come to a consensus on how to properly regulate digital assets.
The Australian Securities and Investments Commission (ASIC) and one of Australia’s “Big 4” banks are currently working together to figure out what kind of regulations should be in place for the industry. They are conducting research, consulting with the industry, and looking at international standards to ensure they are properly regulating crypto assets.
The Australian Minister for Financial Services has made it clear that the government is taking a proactive approach to the regulation of digital assets. This is an important step in ensuring that the industry is able to grow and develop in a safe and secure manner. It is also important to note that the government’s decisions should not be rushed, as there are still a lot of unanswered questions and potential risks that need to be taken into consideration when it comes to crypto asset regulation.