Australia to classify crypto assets

The Australian Treasury released a consultation on “Token Mapping”, which aims to put forward a fact-based, consumer-conscious and innovation-friendly approach to policy development. 

Based on a technologically neutral and functional method, the consultation paper was described as a fundamental step towards regulating the market. The document offers basic definitions for everything in the cryptocurrency ecosystem, such as cryptocurrency networks and smart contracts. 

In a recent interview with Sydney Morning Herald, Australian Minister for Financial Services Stephen Jones claimed that other crypto assets, with the exception of Bitcoin (BTC), are mainly used as a store of value for investment or speculation and said, “Other coins or other tokens are being essentially used as a store of value for investment and speculation. [There is a] good argument that they should be treated like a financial product.” Emphasizing that the fall of FTX shows the need for crypto regulations, Jones also said that the Australian government is focused on regulating crypto assets that act like financial products.

The UK Treasury has also published an 80-page consultation document on cryptocurrency regulation, covering concepts related to the crypto ecosystem, from algorithmic stablecoins to ICOs and NFTs. The UK Treasury has also announced that there will be no separate regulatory system for cryptocurrencies and the proposed crypto regulations will fall under the UK's Financial Services and Markets Act of 2000 (FSMA).