As the year 2022 approached its end, regulators from around the world have continued tightening the regulatory framework around cryptocurrencies.
The regulators have been coming up with new regulatory frameworks for cryptocurrencies on a worldwide scale.
Australia Launches a Public Consultation Platform
The latest reports suggest that Australia has just opened up a public consultation platform that is linked with cryptocurrencies.
The Australian authorities have reportedly launched a portal where the locals will be able to share their comments and consult cryptocurrency assets taxonomy.
The regulatory authorities in Australia have made a proposal pertaining to the cryptocurrency industry. They have proposed to categorize cryptocurrencies into four major product types.
Consultation Paper by Australian Treasury
It was on February 3, when a “token mapping” consultation paper was released by the Australian Treasury.
The Australian authorities have announced that their consultation paper is going to be a foundational step in the cryptocurrency industry.
The government is determined to bring reforms into the cryptocurrency industry. However, they want to achieve this in multiple stages.
According to the regulatory authorities, they want to come up with crypto policies that are innovation-friendly, consumer conscious, and fact-based.
They do not want to come up with a regulatory framework without taking advice and opinion from the public. This way, they want complete input from the locals and people who will be affected by crypto regulations.
This would be the best way to ensure that the policies they introduce would be highly supportive and regulated.
With the public’s input, the crypto market will be streamlined and they will smartly approach the development of the policy.
Definitions of Crypto
The regulatory authorities have been working on streamlining the cryptocurrency industry. They want to define each cryptocurrency based on their technology-neutral and functional methods.
For the first level, the regulatory authorities have worked on outlining the key concepts of smart contracts, crypto tokens, and crypto networks.
According to the vision of the Treasury, the crypto network exists as a computer system that is distributed. The particular system has the ability to host cryptocurrency tokens.
The primary function that the system offers is the processing and storing of user instructions.
The paper introduced by the regulatory authorities cites Ether and Bitcoin as the most prominent and well-known cryptocurrency networks.
The paper also cites cryptocurrencies as technology and assets that grant full access and ownership to the users.
They are fully controlled by the users and they are open to anyone wanting to gain access. The unit of digital information grants exclusive control to whoever owns and controls it.
Most cryptocurrencies are run without the governance of a single host or an entity.
Instead, the entire network that is constantly growing with the addition of new users is responsible for the formation of an independent and self-governed network.
Need for a Regulatory Framework
Australia is among the countries that are making fast progress in the adoption of cryptocurrencies. The people in Australia have been adopting cryptocurrencies on a very fast scale.
Therefore, it is important for the regulatory authorities in Australia to be extra careful. They want to deal with all the aspects that are present in cryptocurrencies, so they are ready to take on any challenges.
This is the only way for Australia to deal with the fast-growing cryptocurrency industry in their jurisdiction. They want to streamline the entire cryptocurrency sector and for that, they want to make necessary changes.
This way, they will be able to do well and be able to control the challenging situations in the crypto sector.
However, they do not want to make it impossible for users to adopt cryptocurrencies on a local scale. This is the reason why they are aiming to be on the same page with the public so things work fine in the future.