The Treasury is seeking feedback from stakeholders on its consultation paper Token Mapping.
The consultation paper, which explores where existing regulation applies and helps set the path for future reforms, describes key concepts needed to build a "shared understanding of the crypto ecosystem". The aim is to "assist industry, regulators, and consumers in navigating the crypto ecosystem and its interaction with financial services laws."
The consultation describes the concept of the functional perimeter – "the broad, functional definition of ‘financial product’ in the Corporations Act", which is intended to be "technology neutral, flexible, and innovation friendly." It also proposes a token mapping framework to assist in conceptualising how crypto products might fit within existing regulatory frameworks.
The Government will propose a framework for custody and licensing for public comment in mid-2023. Feedback to the token mapping paper will be used to shape the development of these regimes.
Deadline for responses is 3 March 2023.