Steve Vallas, Managing Director of Blockchain APAC and Technical Advisor of Skafold Global, said that token mapping will help to legally define digital assets and whether they are financial instruments, thereby increasing regulatory compliance. I mentioned it could form a boundary.
“As an example, a token mapping exercise could provide guidance to exchanges and industry stakeholders on the factors and functions that create or exclude obligations applicable to financial instruments,” Vallas said. I’m here.
“In effect, it facilitates further opportunities to determine whether legal classification is appropriate given the type of product, the risks, and how the product may be developed or reconfigured.”
Nick Abrahams, Global Leader, Digital Transformation Practice, Norton Rose Fulbright, agrees with the government’s current priorities, arguing that there are too many unregulated exchanges in Australia.
“Many of them are sub-scale. These exchanges pose significant risks to Australians, especially those who store cryptocurrencies on exchanges. is at risk, many everyday Australians will lose money.”
Abrahams said token mapping helps distinguish between investments in cryptocurrencies and harmless uses of digital tokens such as marketing and loyalty programs by big brands.
“We need to move quickly to a situation where it is clear which tokens are not regulated and which are regulated. There is no need to regulate all tokens.”
Loretta Joseph, a global authority on digital asset regulation and McDonnell Nadeau consultant, said that in addition to “proper rules on custody,” the turmoil caused by the FTX demise is fundamental to the crypto industry. He stressed the urgent need for clarification of compliance.
“The past few days have shown the need for appropriate checks and balances in reporting, governance, financial management, and more, whether it is crypto assets or securities and fixed income assets, for these companies. ”
Joseph recently participated in the discussion on international standards for virtual assets held at the 17th G20 in Bali. She said global adjustments are underway and Australia need not reinvent the wheel.
“We are dealing with an industry that is global in nature. I think all jurisdictions should look to global standard setters and build on those frameworks,” Joseph said. rice field.
She said a consensus on definitions among regulators at the global level is also important, to avoid what she calls “jurisdiction-based arbitrage”.
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