“We are pleased with yesterday’s announcement from the Treasurer regarding both token mapping and consumer protections.
This move recognises the significance of digital asset infrastructure for the future of Australia, and we look forward to working alongside the Treasury Department towards creation of a regulatory framework.
It also mirrors the calls of many of us in the industry who have been asking for proportional, appropriate regulation of our sector. We echo the position of the Treasury consultation paper in March of this year, which recognised that regulation needs to be centred on risk and remain technology neutral.
BTC Markets submitted feedback to both the cross-party Senate Committee on Australia as a Technology and Financial Centre and the recent Treasury consultation paper on licensing and custody requirements for the crypto industry.
The Treasury consultation paper in March 2022 spoke of regulating according to risk. It recognised that crypto assets are distinct in character compared to traditional financial products. The issues of trust and information asymmetry may be mitigated using blockchain technology. As a result, any regulations need to be applied based on risk, and considered technology neutral in design. Token mapping is the foundational work to achieve this risk-based objective.
The additional benefits of token mapping are many. It will provide greater clarity to crypto investors; aide companies in developing their own blockchain-based innovations; provide guidance to digital currency exchanges; as well as assist regulators in shaping an appropriate regulatory regime. It will also correctly position Australia in a leadership role globally on this issue.
In our 2020 submission to the Senate committee, BTC Markets stated that “Regulation sets the tone. It builds the culture, facilitates the flow of capital and manifesting of skills in our workforce. It is needed to construct the right safeguards, and demonstrate industry preparedness, in protecting all investor clients. It also provides surety as to the direction for investment and jobs growth.”
As the leading Australian cryptocurrency exchange, BTC Markets welcomes today’s announcement. We look forward to working closely with Treasury to keep innovation and consumer protections at the very heart of our industry.”
By Caroline Bowler, CEO
