Australian State Treasury Proposes 'Flexible' Regulatory Reform for Blockchain
The New South Wales Treasury is exploring regulatory reform for blockchain technology citing the need to promote innovation.
Jul 28, 2020 at 9:45 a.m. UTCUpdated Aug 19, 2021 at 3:23 a.m. UTC
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The Treasury Department of New South Wales (NSW), an Australian state, is exploring regulatory reform for blockchain and other emerging technologies.
- A new research paper released on Tuesday reveals the state government's concerns over falling behind on disruptive technologies like blockchain.
- The current climate of "uncertainty" has given way to unexpected scenarios, prompting the need to update regulations around such emerging technologies, the paper reads.
- The Treasury acknowledged regulators need to catch up, saying falling behind the times is a growing problem.
- The NSW Treasury is responsible for the management of the state's finances, advising on policy and developing governance frameworks, and supplying analysis and advice to industry.
- With traditional regulatory models that oversee industry risk being challenged by societal changes, technological advancements and economic circumstances, the department recommends an "outcome-based" regulatory approach.
- Such a model would provide "flexibility" for businesses to innovate and show appreciation for the potential of emerging technologies, without the need to seek approval from regulators.
- An acceleration of reforms could bring benefits worth $4 billion for the NSW economy stemming from a 5% cut in regulatory compliance costs for emerging tech providers, the Treasury suggested.
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