Australia intends to conduct a virtual stocktake of cryptocurrency assets held by its citizens, Canberra’s new executive power announced this week. The move is seen as a sign that the center-left government plans to regulate the country’s crypto space.
The Treasury Department will embark on “token mapping” to support crypto regulation in Australia
As part of an effort to adopt rules for the cryptocurrency sector, Australian Finance Minister Jim Chalmers revealed Monday that his department is preparing to undertake “token mapping,” Reuters reported, citing his statement.
The initiative aims to catalog the various types and uses of domestically owned digital currencies and is seen as a step toward identifying which crypto assets need to be regulated and how to do so.
Australia will be the first country to stock crypto holdings, Chalmers noted, elaborating.
Crypto assets are becoming increasingly popular, so much so that you can see crypto advertisements plastered at major sporting events, and we need to make sure our crypto customers are well informed and protected.”
Theannouncement comes after years of deliberations on how to regulate decentralized cryptocurrencies like Bitcoin. Calls to finally do so have grown over the past few years, when stimulus money and telecommuting during pandemics contributed to a surge in crypto investments.
A Senate study conducted under the previous Conservative administration last year recommended the introduction of broad regulations to protect cryptocurrency owners. However, elections in May of this year resulted in a new center-left cabinet.
The Australian Securities and Investments Commission (ASIC) also recently argued that the growing popularity of cryptocurrencies makes a “strong case for regulation.” The watchdog cited a survey that showed 44% of the country’s retail investors held crypto in late 2021.
While refraining from providing specific details about upcoming rules, Jim Chalmers described 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 authorities believe further efforts are needed to ensure correct reporting.
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