• Australian Finance Minister Stephen Jones has argued that crypto assets should be regulated as financial products.
• Lobby groups such as Blockchain Australia have argued against this broad classification of all crypto assets.
• The Australian government is focused on regulating crypto assets that act like financial products and will soon reveal their plans for this.
The Australian Financial Minister Stephen Jones has recently argued that crypto assets should be regulated as financial products. This comes in light of the FTX collapse, which has raised the need for crypto regulation. The minister noted that, with the exception of Bitcoin, other crypto assets are mainly used as a store of value for investment or speculation, and thus should be regulated as financial products.
However, this argument is being challenged by certain crypto lobby groups in the country, such as Blockchain Australia. The group has argued that a broad classification of all crypto assets as financial products is not necessary, and that there is no need to set up a “completely separate regulatory regime” for something that is essentially a financial product.
Despite this, the Australian government is still focused on regulating crypto assets that act like financial products. Jones has stated that the government will soon reveal their plans for this, through their “token mapping” exercise. This exercise will involve the government mapping out which crypto assets should be regulated as financial products, and which should not.
The Australian government is also working with various financial institutions, such as the Australian Securities and Investments Commission and the Commonwealth Bank, to ensure that their regulations on crypto assets are up to date and effective. This is in order to protect investors and ensure that crypto assets are not used for any illicit activities.
Overall, it is clear that the Australian government is taking steps to regulate crypto assets, while still ensuring that the interests of investors and the wider crypto community are being considered. In the coming weeks and months, it will be interesting to see what the government reveals as part of their “token mapping” exercise, and how this will affect the regulation of crypto assets in the country.