The Australian government released a token mapping consultation paper on Friday and has sought responses from stakeholders on it by March 3, 2023.

"Token mapping is the process of identifying the key activities and functions of products in the crypto ecosystem and mapping them against existing regulatory frameworks," the paper said.

The token mapping consultation paper also revealed it's plans around crypto regulation.

The plan is to "release a (separate) consultation paper proposing a licensing and custody framework for crypto asset service providers in mid-2023" because "after token mapping, licensing and custody reforms are the logical next step for crypto reforms in Australia."

The purpose of this consultation paper would be to identify appropriate obligations and operational standards for crypto asset service providers and how they safe-keep assets for customers.

The government will seek feedback for the crypto asset consultation paper to be released in mid 2023 around the role of government in regulation of the crypto eco-system, potential safeguards for investors, and how to prevent scams. Australia also plans to complete its CBDC pilot in 2023 and at least two major Australian banks plan to create a stablecoin.

(By Amitoj Singh)