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Australia to Regulate Crypto Assets as Financial Products to Protect Consumers

– Australia’s Financial Services Minister Stephen Jones believes that certain crypto assets should be regulated as financial products to protect consumers from future collapses.
– The government is set to conduct a token mapping exercise to enable it to formulate a proper digital assets regulatory framework.
– Jones believes that there is no point in creating a separate regulatory regime for something that is, for all intents and purposes, a financial product.

The Australian government is taking steps to better regulate the crypto industry, in response to the high-profile bankruptcies that have occurred since 2022. Financial Services Minister Stephen Jones believes that certain crypto assets should be regulated as financial products in order to protect consumers from future collapses.

The government is set to conduct a token mapping exercise later this year, which will enable it to create a proper digital assets regulatory framework. According to Jones, treating crypto assets like financial products is the right step to take. In an interview with a local news source, The Sydney Morning Herald, he said that there is no need to create “a completely separate regulatory regime for something that is, for all intents and purposes, a financial product.” Jones believes that if something looks like, walks like, and sounds like a duck, then it should be treated like one.

The issue of crypto regulation has been attracting mixed reactions from various quarters. Some argue that the current regulations are sufficient and that no new ones need to be created, while others believe that a more stringent system needs to be put in place. Jones has been advocating for the latter, and has stated that it is important for authorities to pay special attention to unregulated digital assets that function as financial products.

The token mapping exercise will provide the government with important information about the different types of crypto assets in circulation and the associated risks. With this information, the government will be able to better understand the industry and make informed decisions about how to regulate it.

It remains to be seen how the government will move forward with its plans to regulate the crypto industry, but it is clear that Jones is in favor of treating certain digital assets as financial products. This would provide much-needed protection to consumers, as well as ensuring that the right regulatory measures are in place.