A modern approach to regulation: Integrating law, system architecture and blockchain technology in Australia

Blockchain technology is an important advancement that will change the landscape of the finance and legal sectors in the years ahead. The question of its regulation requires careful consideration and will need to be resolved in order for it to reach its potential and become widely adopted. Transaction security, international standards and interoperability will also need to be further developed in order for it to become a mainstream means of funds transfer and transacting in the global economy.The Australian National Blockchain (ANB) is currently being developed, and when completed will be among the first of its kind in the world.1 It is envisaged as a national platform that will provide a foundation for its wider uptake, enabling businesses to digitally manage contracts, exchange data and conduct authentication and quality assurance processes. China plans to launch its own digital currency and associated infrastructure within 2020 – a development likely to contribute to the stability and credibility of blockchain technology around the world. 2 This note begins with a brief discussion of blockchain technology itself and its applications in digital currency and smart contracts, before examining regulatory approaches that have developed in response to the internet. It supports the argument that a regulatory response to blockchain should combine government-backed system architecture with legislative and regulatory reform.