Australia: Issued Australian Treasury approach to crypto regulation

On 3 February 2023, the Australian Treasury published a statement on its planned approach to crypto asset consumer protection. In particular, the statement outlines the government’s multi‑stage approach to ensure the regulation of crypto assets protects consumers. This multi‑stage approach has three elements: (i) strengthening enforcement; (ii) bolstering consumer protection; and (iii) establishing a framework for reform. The first element seeks for Australian regulators to strengthen their oversight of crypto asset providers' compliance with obligations to Australian consumers. The second element involves reforming the licensing and custody of crypto assets, and establishing a set of obligations and standards for crypto asset service providers. The third element entails the identification of regulatory gaps and ensuring that emerging risks of the crypto sector are identified and controlled. This third and final element involves a token mapping process that will be subject to public consultation.