After attending several sessions at this year’s Blockchain Week in Sydney, it was clear that Australia’s blockchain industry is ready to move on from discussion about why blockchain is a useful technology to actually putting it to use. I sensed a frustration from founders at this year’s event, not unique to Australia, that the pace of innovation and transformation means little for blockchain companies if their governments cannot offer the necessary regulatory clarity and legislative speed.

“In the past 10 years we were talking about historically what was happening,” Jonathan Hatch, senior advisor at the Australian Securities and Investments Commission (ASIC) Innovation Hub, said. “Now we are talking about the solutions and how we will help people. Now you are starting to see the maturity of the industry.”

Marking a decade of Blockchain Week, its organizer, Blockchain Australia, used the occasion to announce an expanded scope. As part of its new direction, the industry body will change its name to Digital Economy Council Australia (DECA), a rebrand that will broaden its mandate to encompass Australia’s digital economy as a whole. Amy-Rose Goodey, previously the chief operation officer of the association, will take on the role of managing director. Going forward, Blockchain Week will be renamed The Digital Economy Conference, and focus on “exploring the pivotal role of DLT, blockchain, and digital assets in Australia’s digital transformation,” according to their announcement. 

This year’s conference themes centered around trust, security and custody, real world asset tokenization and use cases. It was however the attendance of representatives from two of the country’s regulators that was viewed as particularly important in the ongoing dialogue between the blockchain community and the Government. 

Dr. Rys Bollen, senior executive leader digital assets at ASIC, emphasized the agency’s ongoing efforts to apply existing financial services law to new blockchain and digital asset products in a technology-neutral manner. While acknowledging the complexity and need for clarity in this evolving sector, Bollen highlighted ASIC's commitment to providing guidance and certainty through regulatory actions and court cases.

ASIC is preparing changes to licensing systems and policies related to custody, compliance, and trading of digital assets. Bollen spoke about long-term initiatives to support innovation in infrastructure for the industry, such as tokenized clearing and settlement systems. He also gave a word of caution to participants to stay up to date with regulatory changes.  

“Many of you in this room, based on recent cases, probably need to consider whether you need to apply for a license,” Bollen said. “How recently have you consulted with your lawyers about where the law currently sits and what the current understanding is based on the cases over the last six months or so? If you haven't done that in the last 12 months, you need to consider where you are at.”

Chris Adamek, assistant director of the Digital Asset Team at the Commonwealth Treasury, briefed the audience on a proposed framework to regulate digital asset providers, including stablecoins.

“Treasury has been working to further develop that framework and will provide draft instructions to the Office of Parliamentary Counsel,” he said. The draft legislation, set for release by year's end, will undergo public consultation to refine the laws and ensure they effectively address industry needs. He urged the audience to “continue to engage with us as much as you can, as we're constantly trying to improve on the framework.” He noted that in the recent federal budget, “the government has agreed to progress the digital asset platform reforms, and has also provided some funding for Treasury and ASIC, furthering our capacity to start undertaking exploratory work on important things like tokenization.”

lead image: Michael Bacina, Chair of Blockchain Australia, with newly appointed Managing Director, Amy-Rose Goodey. Photo credit : Future Art