Australia introduces classification for crypto assets
Following the global regulatory race, Australia opened the public consultation on its own taxonomy of crypto assets. The national regulators propose to distinguish four major types of products related to the crypto industry.
On Feb. 3, the Australian Treasury released a consultation paper on “Token Mapping,” announcing it as a foundational step in the Government’s multi‑stage reform agenda to regulate the market. It seeks to inform “a fact‑based, consumer conscious and innovation-friendly” approach to policy development.
The paper, based on the “functional” and technology-neutral method, proposes a number of basic definitions for all the things crypto.
At the first level, it outlines the key concepts of ‘crypto networks,’ ‘crypto tokens,’ and ‘smart contracts.’ According to the Treasury’s vision, a crypto network is a distributed computer system capable of hosting crypto tokens. Its primary function is to store information and process user instructions. The paper cites Bitcoin (BTC) and Ethereum (ETH) as the two most well-known public crypto networks.
Related: Australia bolsters crypto watchdogs in ‘multi-stage’ plan to fight scams
A ‘crypto token’ is defined as a unit of digital information that can be ‘exclusively used or controlled’ by a person who doesn’t administer the host hardware where that token is recorded. The concept of ‘exclusive use and control’ is a key distinguishing factor between crypto tokens and other digital records, according to the paper.
A ‘smart contract’ goes as the computer code that has been published to a crypto network’s database. It involves intermediaries or agents performing functions pursuant to promises or other arrangements or functions being performed by crypto networks in the absence
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