Australia to Stocktake Crypto Holdings Ahead of Regulation

Australia’s Treasurer Jim Chalmers announced Monday that his department is preparing for ‘token mapping’ as part of his efforts to adopt rules in the cryptocurrency sector. Reuters quoted his statement.

This initiative will catalog all digital currencies used in the country. It is considered a first step towards identifying the crypto assets that need to be regulated.

Chalmers highlighted that Australia will be the first country in the world to stocktake crypto holdings.

We need to ensure that customers who engage with crypto are properly informed and protected, given the increasing popularity of crypto assets.

After years of debate on how to regulate decentralized cryptocurrency like bitcoin, has been announced. Since the home-office work and stimulus payments that were made during the pandemic have led to an increase in crypto investments, the calls for regulation have grown in recent years.

An inquiry by the Senate under the former conservative government recommended that wide-ranging regulations be adopted to protect cryptocurrency owners last year. The election of May this year resulted in a center-left cabinet.

The Australian Securities and Investments Commission ( ASIC), also stated that the increasing popularity of cryptocurrency makes it a strong case for regulation. According to the watchdog, 44% of country’s retail investors owned crypto by 2021.

Jim Chalmers, while he did not give any details about any future rules, described token mapping as “the first step in reform.” He made these comments in response to the Australian Taxation Office’s announcement earlier this year that it would concentrate on capital gains from cryptocurrency assets. This is one of many priority areas where the authority believes more effort is needed to ensure accurate reporting.