You can see the rules and regulations in other jurisdictions.
While there are currently no specific regulations dealing with blockchain technology in Australia, ASIC has published guidance outlining its approach to regulatory issues that may arise as a result of the implementation of blockchain technology and distributed ledger technology (DLT) solutions by fintech companies. As part of its 'technology neutral' stance when applying the financial services regime, ASIC reiterates that businesses providing financial or consumer credit services using DLT will still be subject to the compliance requirements currently in place. As noted in Sections I and IV.i, Australia is currently experiencing a regulatory shift that may see various blockchain arrangements (e.g., DAOs) brought within the scope of regulation.1
Electronic Transactions Act 1999 (Cth) (the ETA) and state and territory equivalent legislation permit the use of self-executing contracts or 'smart contracts' in Australia. ETA provides a legal framework for the same kind of electronic commerce as paper-based transactions. The ETA permits self-executing transactions in Australia, provided that they meet the traditional elements of a legal contract: intention to create legally binding obligations, offer and acceptance, certainty, and consideration.1
Because there is little case law on smart contracts in Australia, it is difficult to analyze correction mechanisms, such as arbitration and mediation, in relation to this type of contract. Due to the possibility of self-executing dispute resolution through online dispute resolution platforms, self-executing contracts may alter traditional dispute resolution in Australia.1
An automated service provider must hold (or be able to rely on) an AFSL with the requisite managed discretionary account (MDA) authorisation to offer fully automated investments in Australia. Automated services providers and their retail clients must come to an individual agreement, known as an MDA contract, in order to utilize this process. The contract allows trades to be executed on behalf of the client, which includes automatically adjusting their portfolio without consulting them for each transaction. Additionally, providers must adhere to regulatory duties concerning providing these automated financial products.1
Client identification in Australia
