- APRA aims to tackle risks such as operational, investment, fraud, etc.
- The roadmap is planned to be executed by 2025.
- Recently the Russian finance ministry also announced its crypto regulation bill.
According to this, the regulatory body will be analyzing the crypto assets and all the threats that come with investing in them.
Australia Analyses Crypto Risks
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.
Australia Joins the Band
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.