Crypto Mapping: Australia To Conduct First-Of-Its-Kind Sector Audit — Here's Why

A public consultation paper on crypto mapping will reportedly be released soon.

A terminal to accept payments in Bitcoin seen at a pub in Sydney, Australia.

Source : Getty

The Australian Department of Treasury is set to conduct a global-first audit of the country’s crypto sector. To better understand and regulate the industry, Australia is beginning a review of crypto assets, ‘mapping’ all tokens in the nation. The move aims to protect investors from misleading advertisements and promotions of crypto investment opportunities. Based on the findings of the audit, the federal government will take a renewed look at regulating the crypto sector after consulting with all stakeholders associated with the market.

In the process of token mapping, the various characteristics of all available cryptocurrencies will be determined. This will be a part of an audit of the crypto ecosystem. A public consultation paper on crypto mapping will reportedly be released soon.

As per a report by News.com.au, Australian Treasurer Jim Chalmers said that the crypto review is all about allowing “consumers to participate in the market while also better protecting them.” Chalmers added that the crypto sector is “largely unregulated” and that there’s a need to “do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers.” 

“With the increasingly widespread proliferation of crypto assets — to the extent that crypto advertisements can be seen plastered all over big sporting events — we need to make sure customers engaging with crypto are adequately informed and protected,” Chalmers said.

Chalmers added, “The aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets, and provide additional consumer safeguards.”

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.