APRA made it clear that Regulated entities should engage with their responsible supervisor if they are undertaking crypto-related activities.
Today, the Australian Prudential Regulation Authority (APRA) announced its crypto risk management expectations and policy roadmap.
According to this, the regulatory body will be analyzing the crypto assets and all the threats that come with investing in them.
ARPA stated that soon it would be starting with the risk management expectations for all regulated entities that engage in cryptocurrency-related activities.
The regulatory body said that it expects all crypto-related entities to conduct appropriate due diligence and a comprehensive risk assessment before engaging in activities associated with crypto-assets. At the same time, they must have plans in place to mitigate any risks that occur.
Furthermore, they should also comply with all conduct and disclosure regulation administered by the Australian Securities and Investments Commission (ASIC).
Along with these, the Prudential Regulation Authority is also looking to establish a far-reaching crypto regulation foundation. Adding to the same, the announcement said,
“APRA is developing the longer-term prudential framework for crypto-assets and related activities in Australia in consultation with other regulators internationally, to ensure consistency in approach. For authorised deposit-taking institutions (ADIs), the Basel Committee is consulting on the prudential treatment for bank exposures to crypto-assets.3 This will provide the basis for internationally agreed minimum standards for ADIs, and a starting point for prudential expectations for other APRA-regulated industries.”
ARPA has prepared a 4-year plan starting in 2022, during which it will be ironing out every wrinkle related to crypto-assets and other operational risks.
While no specific crypto regulation bill has been proposed in Australia, it certainly is getting closer to establishing one. In the meanwhile, other countries such as Russia have already set foot on that path with the Ministry of Finance draft law of the crypto bill.
As reported by FXEmpire, the bill will be setting new rules for the trade and mining of cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) where the exchanges and digital trading platforms’ operators’ activities will be licensed and controlled by a Russian government body.
Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.