In early 2023, the Australian Government will release its consultation paper as a part of its token mapping initiative, as relieved by Jim Chalmers, Australian Treasurer.

After the collapse of FTX, one of the significant crypto exchange firms, the crypto industry has received much attention from Australian regulatory and enforcement agencies. Now every government is focused on providing significance to better consumer protection and imposing more regulatory laws.

Australian treasurer Chalmers also informed in a statement shared on Dec 14 that the Anthony Albanese-led government is “taking action to improve the regulation of crypto service providers and ensure additional safeguards for Australians.”

Chalmers also revealed the consultation paper’s components, including how often crypto regulations should be updated, asset custody, and consumer protection laws under the earlier announced token mapping exercise.

He said, “The next steps in the Government’s ongoing ‘token mapping’ work will include the release of a consultation paper in early 2023 to inform what digital assets should be regulated by financial services laws, and the development of appropriate custody and licensing settings to safeguard consumers.” 

He added, “Following the release of token mapping, the Government will consult on a custody and licensing framework next year before introducing legislation.”

This statement by Chalmers further validates the earlier Treasury’s promise to build and regulate the crypto framework in 2023.

Also, to “modernize Australia’s financial system,” the push for regulating crypto with the government to reform regulations on financial market infrastructure.

The Australian government has always remained pro-crypto; however, the recent scenario of the crypto market has made them retire from innovation in the wake of consumer protection.

A stablecoin-focused report was published by the Reserve bank of Australia(RBA) on Dec 8, which has also informed the authorities to “undertake significant work.” and to find out how they can make it acceptable and bring it into the ecosystem. 

The report said, “Stablecoins have the potential to enhance the efficiency and functionality of a range of payment and other financial services.”

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