Blockchain technology is gradually being adopted by numerous countries as of late, and it seems like Australia is no exception. There is thus a desire by the senate committee in Australia to form a national blockchain land registry. The Senate committee in question is involved specifically with matters pertaining to finance and technology, and it has since managed to publish a report that calls for the creation of a national land registry that is based on blockchain. Additionally, the senate wants increased clarification regarding laws that relate to smart contracts, and it also desires continued efforts to be sustained in an attempt to form international standards for Distributed Ledger Technology (DLT).
‘Administrative processes need to be streamlined according to the committee
The aforementioned committee had provided 23 recommendations pertaining to consumer taxation, consumer data, and blockchain. Of these, five would be specifically regarding digital assets and blockchain as well as taking international data standards into consideration.
Furthermore, the committee wants the National Cabinet to proactively consider the possibility of providing support to the abovementioned national land registry powered by blockchain in an effort to have it serve as a sort of pilot project. The pilot project would then, in turn, assist in Commonwealth-State collaboration and cooperation for ‘RegTech,’ with the goal of highlighting different ways that administrative processes may be streamlined for the private as well as the public sectors.
Smart contracts status uncertain under Australian law
Looking at things from a more macro perspective, the committee also recommended the need for additional certainty and clarity regarding rules and regulations relating to digital assets. It further highlighted various concerns that industry stakeholders do have in regards to the seemingly undetermined status of smart contracts as per the guidelines of the country’s laws and ordinances. The committee also stated that although there it had heard plenty of concerns, there were not many solutions being provided and that this needs to be rectified as soon as possible.
Therefore, the committee requested the nation’s government to help provide some much-needed clarity for smart contracts’ status in Australia. Lastly, the committee shall also be paying close attention to CBDCs (Central Bank Digital Currencies) as well as stablecoins as part of its plans to constantly review and analyze different ways as to how capital gains may be applicable to crypto transactions. The committee hopes that this will encourage the government to review the regulations that are already in place and to once again provide additional clarity and resolutions.