Featured Product

    APRA Sets Out Risk Management and Policy Roadmap for Crypto-Assets

    April 21, 2022

    The Australian Prudential Regulation Authority (APRA) published a letter that sets out initial risk management expectations for all regulated entities that engage in activities associated with crypto-assets, along with the related policy roadmap for the period ahead.

    APRA expects all regulated entities to adopt a prudent approach while undertaking activities associated with crypto-assets and ensure that any risks are well-understood and well-managed before launching material new initiatives. The key expectations from all regulated entities are to:

    • Conduct appropriate due diligence and comprehensive risk assessment before engaging in activities associated with crypto-assets and ensure to have actions in place to mitigate any associated risks including credit risk, investment risk, operational risk, cyber risk, anti-money laundering/combating the financing of terrorism (AML/CFT) and technology risks.
    • Consider the principles and requirements of Prudential Standard CPS 231 Outsourcing or Prudential Standard SPS 231 Outsourcing when relying on a third party in conducting activities involving crypto-assets.
    • Apply robust risk management controls, with clear accountabilities and relevant reporting to the Board on the key risks associated with new ventures.
    • Consider potential prudential risks formulated by APRA while undertaking crypto-asset activities.
    • Comply with all conduct and disclosure regulation administered by Australian Securities and Investments Commission (ASIC), including risk management, consideration of distribution practices, disclosure, and product design.
    • Consult with APRA and ASIC on prudential, disclosure, or conduct requirements and expectations when undertaking activities associated with crypto-assets.

    Policy Roadmap—In addition, APRA plans to develop long-term prudential framework for crypto-assets and related activities in consultation with other international regulators, to ensure consistency in approach. In the period ahead, APRA plans to:

    • Consult on requirements for the prudential treatment of crypto-asset exposures in Australia for authorized deposit-taking institutions, following the conclusion of the Basel Committee’s current consultation. The consultation is expected to be undertaken in 2023.
    • Progress new and revised requirements for operational risk management, covering control effectiveness, business continuity, and service provider management. The draft prudential standard will be released for consultation by mid-2022.
    • Develop regulatory framework for Stored-value Facilities (SVFs) and consult on prudential requirements for large SVFs by 2023.


    Related Links


    Keywords: Asia Pacific, Australia, Banking, Crypto-Assets, Operational Risk, Credit Risk, Cyber Risk, AML CFT, CPS 231, SPS 231, Disclosures, Business Continuity, ASIC, Stablecoins, Outsourcing Arrangements, APRA

    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596