Australian regulator reveals 4-year crypto policy roadmap

Today, the Australian Prudential Regulation Authority (APRA) announced its crypto risk management expectations and policy roadmap.

According to this, the regulatory body will analyze crypto assets and all threats that come with theinvestment in them.

Australia analyzes the risks of cryptocurrencies

ARPA said it will soon begin with risk management expectations for all regulated entities engaging in cryptocurrency-related businesses.

The regulator said it expects all cryptocurrency-related entities to conduct appropriate due diligence and comprehensive risk assessment before engaging in cryptocurrency-related businesses. At the same time, they must have plans in place to mitigate any risk that occurs.

In addition, they should also comply with all standards of conduct and disclosure administered by the Australian Securities and Investments Commission (ASIC).

Along with these, the Prudential Regulation Authority is also looking to establish a far-reaching cryptocurrency regulatory foundation. Adding to the same, the announcement said:

“APRA is developing the long-term prudential framework for crypto-assets and related businesses in Australia in consultation with other regulators internationally to ensure consistency in approach. For Authorized Depositary Institutions (ADIs), the Basel Committee is consulting on the prudential treatment for bank exposures to crypto assets.3 This will provide the basis for the internationally agreed minimum standards for ADIs, and a point of reference. departure for prudential expectations for other sectors regulated by the APRA ".

ARPA has prepared a 4-year plan starting in 2022, during which every wrinkle related to crypto-assets and other operational risks is ironed out.

Australia joins the ranks

While no specific cryptocurrency regulation bill has been proposed in Australia, it certainly is getting close to establishing one. Meanwhile, other countries such as Russia have already set foot on this path with the Ministry of Finance's draft law to regulate cryptocurrencies.

As reported by crypto-currency, the bill will establish new rules for the trading and mining of cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) where the activities of the operators of exchanges and digital trading platforms will be authorized and controlled by a Russian government agency.