The Australian Prudential Regulation Authority (APRA) has released a policy roadmap to adopt crypto-asset regulation for financial institutions.
According to a policy statement issued a few days ago, Australia’s top financial regulator has set an interim target for 2025 to make the framework workable.
To this end, APRA intends to lead discussions in 2023 on standards for the financial treatment of crypto-assets.
The inclusion of stablecoins within the existing framework of “store value facilities” – a broad phrase for any non-monetary facility in which users pay money in advance for future redemption – is also in the works. study.
According to ‘Crypto-assets: risk management expectations and policy roadmap‘, “While activities associated with crypto-assets are still relatively limited in Australia, the scale and potential risks of such activities could become significant over time.”
The roadmap provides that “investment in crypto-assets, lending related to crypto-assets, issuance of crypto-assets and provision of services associated with crypto-assets for clients” will all be subject to the new legislation.
The study adds that the dangers of working with cryptocurrencies could include operational risk, investment risk, and credit risk for financial institutions.
The regulator outlined its expectations for how companies manage crypto-asset risks, asking them to implement comprehensive risk management procedures with clear responsibilities and relevant reporting, among other things.
Before engaging in crypto-asset activities, entities should perform a comprehensive risk assessment and put measures in place to manage the associated risks.
The letter also says companies dealing in stablecoins — cryptocurrencies whose value is tied to specific assets — will be subject to further scrutiny.
APRA’s announcement comes as crypto investment in Australia gathers momentum. 21Shares, an issuer of exchange-traded funds (ETFs), revealed a few days ago that Two-point ETF will be launched in the next few days, with one investing directly in Bitcoin and the other in Ether.
According to a study conducted by comparison site Searcher Australians were among the most ardent crypto enthusiasts last year, with 18.3% owning it. Compared to a global average of 14.6%, this is a significant figure.