Sydney, the capital of New South Wales, Australia (EQRoy/Shutterstock)
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.