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Australia Takes Up Crypto Holdings Ahead Of Regulation – Regulation Bitcoin News
Australia intends to conduct a virtual inventory of cryptocurrency assets held by citizens, the new executive announced in Canberra this week. The move is seen as an indication that the centre-left government plans to regulate the country’s crypto space.
Treasury embarks on ‘Token Mapping’ to underpin crypto regulation in Australia
As part of efforts to enact rules for the cryptocurrency sector, Australia’s Treasurer Jim Chalmers revealed on Monday that his department is preparing to conduct “token mapping”, Reuters reported, citing his statement.
The initiative will aim to catalog the different types and uses of digital currencies owned in the country, and is seen as a step towards identifying which crypto assets need to be regulated and how it should be done.
Australia will be the first country to take up crypto holdings, Chalmers pointed out, further elaborating:
With the increasingly widespread spread of crypto assets, to the extent that crypto advertising can be seen in place over major sporting events, we need to ensure that customers engaging with crypto are adequately informed and protected.
The announcement comes after years of deliberation over how to regulate decentralized cryptocurrencies such as bitcoin. Calls to finally do so have increased over the past couple of years as stimulus payments during the pandemic and home office work contributed to a surge in crypto investment.
A Senate inquiry carried out under the previous Conservative government last year recommended the adoption of comprehensive regulations to protect cryptocurrency owners. However, the election in May resulted in a new centre-left cabinet.
The Australian Securities and Investments Commission (ASIC) also recently insisted that the increased popularity of cryptocurrencies makes a “strong case for regulation.” The watchdog cited a survey, according to which 44% of the country’s retail investors held crypto at the end of 2021.
While he refrained from providing specific details about any upcoming rules, Jim Chalmers described the token mapping as “the first step in a reform agenda.” His comments follow a decision by the Australian Taxation Office announced earlier this year to focus on capital gains from crypto assets as one of several priority areas where the authority believes more effort is needed to ensure correct reporting.
Do you expect Australia to introduce extensive regulation for its cryptocurrency sector soon? Tell us in the comments section below.
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