Australian senator calls for blockchain adoption to increase compliance with financial regulations


Liberal Australian Senator Andrew Bragg hinted that blockchain technology could be the answer to reducing the complications associated with financial regulation compliance and providing transparency.

“The future is technology via blockchain,” he said, speaking Wednesday at the Future of Financial Services 2020 virtual conference.

“It could be the solution for one-touch government with real-time international transactions. It will eliminate our time zone problem, which has been a problem for Australia in the long run … blockchain technology can simplify regulatory processes,” reduce fraud and reduce costs for regulatory compliance and administration.

“It can help Australia rebuild trust and confidence in financial services in a post-Hayne Royal Commission world.”

Bragg also stressed the importance of strengthening Australia’s global competitiveness in the financial sector, particularly against Singapore.

“Singapore’s ambition is to build the world’s first global data exchange, and we will have to scale up our game to compete with that,” he said.

His suggestion was that Australia considered Hong Kong as a potential growth market.

“Hong Kong will still be an important gateway to China, but due to the recent turmoil and foreign influence laws, they won’t have the same attraction to the regional headquarters. We’d be crazy if we sat idly and allowed a share like that. profitable market to bring to Singapore or Tokyo, ”Bragg said.

Read more: Australian tech unicorns say R&D program misses the mark

Following this belief, Bragg said a 15-member advisory group was established to “come up with ideas to help Australia capitalize on Hong Kong’s demise as a financial and technology center” and “overcome bureaucratic blocks and produce credible policy advice. to cabinet ministers and the Prime Minister’s special convoy for global business and talent attraction. ”

Bragg’s proposal comes as trade tensions between Australia and China continue to rise. Second ABC News, several Chinese importers have received directives from the Chinese government to stop shipments of Australian wine. This would be in addition to other Australian exports that have already been subject to various forms of restrictions in the Chinese market, such as coal, barley, timber and lobster.

Equally important to the Australian economy is its ability to attract international businesses and talent, Bragg said. According to the senator, Acting Minister for Immigration Alan Tudge’s recent announcement to set up a “strike team” to attract international business to Australia, particularly in the fintech, financial services, advanced manufacturing and health sectors, was a good first step.

“Australia as a financial center has been a dream for decades. The dream will only come true if the government is ready to change. And with that, it means we may need to change the way we regulate and administer tax laws. We may. need to offer tax deals to companies to attract them, “Bragg said.

Bragg also reinforced the notion that Australia’s Consumer Data Right (CDR), officially launched on 1 July, should be expanded to include the retirement sector. He believes the move would allow people to easily choose their super fund.

See also: Australian Consumer Data Right: Here’s everything you need to know

This was one of 22 recommendations that the select committee on financial technology and regulatory technology, chaired by Bragg, made in its interim report on the state of fintech and regtech in Australia two months ago.

“I am often misquoted as saying I want to destroy the super. That’s not true. I think the super is a good idea but after 30 years, it needs fixing … the beauty of CDR is that it cuts through all of industrial archeology. , which the unions cling to for dear life and relevance, ”Bragg said.

“As a result, I believe the new super rails will be stapling, more CDR, a bottom and easy to move. This will stop the creation of millions of unintended multiple accounts and raise about A $ 3 billion into the savings pool over the next 10 years.”

Bragg added that in the remaining months of the committee, “he will look to the long-term visions of technology as the engine for future jobs and economic growth.”

“We have to make it easier to become a global player,” Bragg said.

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