See More

Is Australia Ready to Regulate Crypto Like Financial Products?

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Aussie Minister Stephen Jones believes there are 'good arguments' to treat crypto as financial products.
  • Local reports note that cryptocurrency regulation will be a major concern in the fintech sector in 2023.
  • Last year, the Australian government hinted at token mapping as a priority.
  • promo

Financial Services Minister Stephen Jones believes there are “good arguments: to treat crypto as financial products in Australian legislation.

The Australian Securities and Investments Commission (ASIC) and the Commonwealth Bank favor the argument, but the lobby group Blockchain Australia are against it.

If other coins or tokens are effectively used as a store of value for investment and speculation, there is a strong case for treating them as a financial product, says Jones.

Crypto Token Mapping to Launch Shortly

According to a report in the Sydney Morning Herald, cryptocurrency regulation will be a major concern in the fintech sector in 2023. Meanwhile, the government will launch a “token mapping” effort shortly, according to Jones.

Last year, the Australian government highlighted the token mapping exercise as a priority. It will launch a consultation paper soon.

Jones told the media outlet: “I don’t want to pre-judge the outcomes of the consultation process we are about to embark on. But I start from the position that if it looks like a duck, walks like a duck and sounds like a duck then it should be treated like one,”

Australia is ramping up regulations. But it is also one of the many countries working on a central bank digital currency (CBDC).

Australian Market Could Set Global Standards

The recent market slump has kept only a few industry players from launching Web3 products. But, the National Australia Bank (NAB), one of the biggest banks in Australia, created its AUDN stablecoin last week. It came after a similar introduction by rival ANZ Bank the past year.

This also raised questions about how these crypto products will be regulated. Jones stated that he is not particularly interested in creating an entirely new regulatory framework for what is essentially a financial product. His statement comes as numerous nations worldwide have decided not to label crypto assets as financial goods.

Recently, RBI governor Shaktikanta Das argued: “Crypto is not a financial product then, therefore crypto masquerading as a financial product or asset is completely a misplaced argument.”

Contrarily, in 2022, the Financial Sector Conduct Authority (FSCA) of South Africa categorized crypto assets as financial products. In the U.S., the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has ignited another debate. He has frequently classified several crypto assets as “securities.” A characterization that has prolonged the Ripple Labs and SEC legal battle.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

shraddha_sharma.jpg
Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
READ FULL BIO
Sponsored
Sponsored