After the Assistant Minister of Finance of Australia recently posted a message on this matter, the Australian encryption management urged that all digital currencies and financial products should be put on the same boat with caution.

Stephen Jones, Assistant Minister of Finance and Chief of Financial Information Service Section, briefed the country's encryption regulation in an interview with the Sydney Morning Herald published on January 22.

According to the management of a crypto trading center, he confirmed that the government department was in the process of "token projection" this year to determine what crypto property to supervise and gradually carry out negotiations with the industry "quickly"

However, Jones said that he was "not so attracted" to develop a new set of policies and regulations for what he thought was essentially financial products.

Jones said, "I don't want to judge in advance the results of the whole process of negotiation that you will start immediately. But my position is that it may look like a domestic duck, walk like a domestic duck, and sound like a domestic duck. It should be treated like a domestic duck.".

"Other coins or other tokens are mostly used for investment and speculation. There is a good reason to think that they need to be treated as a financial product."

According to the Australian Securities and Investment Commission (ASIC) and Commonwealth Bank, one of the "four largest" financial institutions in Australia, they also support the regulation of cryptocurrency as a financial product

Cryptographic consul warning "universal" way

However, crypto investors urge to treat crypto property with caution.

Michael Bacina, a blockchain and digital currency analyst and Piper Alderman partner, warned in an interview with CoinTelegram that "if a technical approach is classified as a common approach to financial products, if the available approval and compliance management methods are not clearly defined, it may lead more encryption business processes abroad and bring new risks."

Adam Percy, the general counsel of Swyftx, the China Cryptographic Trading Center, echoed this view in a public announcement to CoinTelegram, saying:

"The skill is to protect customers, and there is no need to supervise the well-managed Chinese digital currency business process, nor to force everyone to apply the offshore account trading center without too strict restrictions."

In addition, Holger Arians, CEO of Banxa, the encryption channel service provider, also expressed concern that too much regulation could "seriously harm" Australia's pioneering role in the encryption industry.

Caroline Bowler, CEO of BTCMarkets, also warned that the regulation was "over standard".

"This may make our digital economy retrogress, and finally wipe out our own competitiveness."

The Australian financial industry regulatory organization has not announced the establishment of a regulatory framework, but considering the collapse of the FTX in November, Australian politicians and the industry around the world have already seen the urgency of action.

Jones said that the collapse of FTX "made the importance of encryption regulation beyond doubt".

In September, Australian crypto entrepreneur and investor Marki Shebelista warned that the hasty launch of token projection might bring difficulties to the industry.

He added that the diversity of token projection was not clear, and Australia's "emerging" encryption industry needed to be "consistent with other core markets and regulations".

Blockchain Australia, the encryption persuasion team, fully agreed. At that time, it felt that if all the encryption properties were called financial products, it would endanger the investment and innovation of the encryption industry projects, and then cause the outflow of relevant posts in the industry.