Instead of waiting for the government to impose regulations on the use of blockchain, players in the sector should begin a conversation about self-regulation, said the Australian Digital Commerce Association (ADCA).
ADCA CEO Nicholas Giurietto said that when blockchain technology started to become important in 2016, the Australian government was worried that it could be used for money laundering or terrorist financing.
So many Australian companies working on blockchain formed ADCA in an attempt to self-regulate. The goal was to maintain a uniform playing field and preserve its autonomy so that the government would not intervene to regulate.
ADCA is a non-profit corporation represented by a board of directors consisting of a maximum of 12 members appointed for a two-year term, and has an industry advisory council charged with drafting blockchain policies.
In his speech Seeing Eye to Eye: How we can work better with governments and regulators at Blockfest 2018 on 26 and 27 September, Giurietto explained that the association did not simply elaborate the code of conduct on its own, but drafted it based on dialogues with various regulators such as securities, banks and taxation.
"I had many, many meetings, with various regulators, very boring but essential," he said. He added that the meetings were also an opportunity to educate regulators and change their perceptions.
The Code of Conduct of ADCA requires its members to set up trust accounts to avoid exchanges with client funds, pass solvency tests, have adequate data protection and transparent pricing and adequate channels for dispute resolution in case of problems.
"If you are following all the rules of our code, we believe it can be used as a defense – so even when a company is not sure of the law, it can show that the best efforts have been made," he said.
Another advantage of discussing regulation with the authorities is having the opportunity to push for fairer conditions.
"Regulators are friends and not enemies, their policy plans are solid, even if the execution is sometimes questionable," sums up Giurietto.
With blockchain technology that is rapidly gaining popularity in Southeast Asia, companies will probably also have to adopt self-regulation.
Blockchain Asia CEO Sdn Bhd Gwei Hway said many investors interested in blockchain technology are focusing their attention on Southeast Asia.
"Ask any investor in this space and they will tell you that Southeast Asia really excites them.What we wanted to do in Blocfest is what the opportunity is, because it's important for companies and individuals at the same time. way, and only how to capitalize on it, "he adds.
"We are all optimistic about technology and we all have ideas to make it happen, but we still need to know how to get there, we need a clear path ahead, and to do that we need a consensus on what works and what does not," he said Hway in his first observation on the first day of Blocfest.
Blocfest has seen the participation of over 30 international speakers, including blockchain entrepreneurs, developers, global investors, academics and enthusiasts.