OECD Issues Paper On Blockchain And Competition Policy

By Adithi Koushik for Intellectual Property Watch

The disruptive blockchain technology has been making waves, especially with Bitcoin and smart contracts taking centre stage. For some, it calls for a wide range of regulatory issues to be addressed, including patentability (IPW, Patents, 5 September 2016) and more recently, competition-related concerns.

Accordingly, the Organisation for Economic Cooperation and Development (OECD) hopes to assimilate contributions from stakeholders through its Blockchain Technology and Competition Policy Issue Paper [pdf].

A discussion hoping to shape future regulations will take place at the 129th meeting of the OECD Competition Committee from 6-8 June 2018. The paper explores collusion, cartels and abuse of dominance in the context of blockchain users.

The focus will be on helping governments to prevent the misuse of blockchain for illicit activities, the paper says. It also could facilitate the efficient adoption of blockchain technology by governments. Given the transparent and inerasable history of asset transfer, blockchain may be used to limit tax avoidance and enhance enforcement.

If regulated to ensure stability, governments may even explore the idea of state-backed cryptocurrency, it says, adding that a stable yet flexible regime will keep the doors open for endless possibilities.