Prior to regulation Australia would stockpile cryptocurrency holdings, the new executive power in Canberra revealed this week that Australia plans to conduct a virtual inventory of the bitcoin assets held by its citizens. The action is interpreted as a sign that the country’s crypto market would be regulated by the country’s center-left administration.

Treasury launches “Token Mapping” to support Australia’s cryptocurrency regulation

Australia’s Treasurer Jim Chalmers said on Monday that his department is getting ready to perform “token mapping” as part of attempts to implement regulations for the cryptocurrency industry, according to a statement cited by Reuters.

The project is considered as a first step in determining which crypto assets would need to be regulated and how to achieve so. It will record the many forms and applications of digital currency possessed within the nation.

Chalmers said that Australia will be the first nation to inventory cryptocurrency holdings and added more detail:

The statement follows years of discussion over how to control cryptocurrencies like bitcoin that are decentralized. Since the rise in cryptocurrency investments caused by home-office working and stimulus payments made during the epidemic, there have been more calls to eventually accomplish this.

The introduction of extensive restrictions to safeguard bitcoin owners was proposed last year by a Senate investigation conducted under the previous Republican administration. However, a new center-left administration was formed as a result of the election in May.

The Australian Securities and Investments Commission (ASIC) has argued that there is a “strong case for regulation” given the rising popularity of cryptocurrencies. According to a report published by the watchdog, 44% of retail investors in the nation were holding cryptocurrency as of late 2021.