Australia’s Treasury Department is developing a token mapping framework for digital assets that is “tech agnostic” and “principles-based.” The framework aims to classify tokens based on their function and purpose rather than focusing on specific technology or tokens. Trevor Power, the Australian Treasury assistant secretary, explained that the purpose of this approach is to structure regulations around the principles of the token’s function. The framework will be able to accommodate changes in utility and function over time and will subject crypto assets to regulatory review if they become significant within the ecosystem. Power emphasized the importance of creating a robust token mapping regulation that can function in a “tech-neutral” and “principles-based manner.” The initiative is not influenced by recent regulatory enforcement actions by the US Securities Exchange Commission and may align with the European Union’s Markets in Crypto Assets (MiCA) regulation. Australia welcomes digital asset firms to consider its market and align with the token mapping framework. The Treasury Department believes that token mapping is essential for understanding the interaction between the crypto ecosystem and existing financial regulatory frameworks in the country.
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