Australian supervisory authorities expand the country's crypto rules in the latest guidelines
Australian supervisory authorities expand the country's crypto rules in the latest guidelines
- Both regulatory authorities intend to support the proposed legal provisions in order to reduce the risk and at the same time contain criminal activities
- Apra is also looking for possible approaches for the "regulatory" regulation of stablecoins
Two of the most important regulatory authorities of Australia have published guidelines on Best Practices for companies that deal with crypto in order to improve the financial clarity for the emerging digital asset industry in the country.
Both the Australian Transaction Reports and Analysis Center ( Austria ) and the Australian Prudential Regulation Authority ( Apra ) on Wednesday gave explanations in which he explained perceived risks and expectations in dealing with the emerging investment class.
Unlike in neighboring jurisdiction, including Singapore, whose rules for digital assets are well established, cryptor regulation in Australia consists of a patchwork of rules that come from the traditional financial sector.
The latest guidelines of the country's supervisory authorities mark a big step towards greater clarity for crypto companies working in Australia in connection with the proposed legal framework. This is followed by an earlier guideline proposal that aims to regulate everything from crypto control to the licensing of the exchange of digital assets.
Austria, which is responsible for monitoring and reaction to financial crime, has campaigned for the traditional narrative that an increased risk of criminal activities is associated with increasing crypto acceptance.
"Financial service providers must pay attention to signs of criminal use of digital currencies, including their use in ransomware attacks," said Nicole Rose, CEO from Austria, in an explanation.
in his leadership Criminal abuse of digital currencies in financial crime ”contains Austrac instructions for companies that uncover tax evasion, terrorist financing, fraud and money laundering.
Austria also provided companies with instructions on how cases of ransomware attacks that aim to use crypto as a liquid blackmail.
"Digital currencies like Bitcoin have made it possible to demand higher ransoms and to receive payments easier, which increased the profitability and attractiveness of ransomware," wrote Austria.
It was also based on the findings of last year's Senate Committee on the subject of "Australia as a technology and financial center", which listened to the DE-Banking cases of participants in the crypto industry by the country's largest financial institutions, including some of the "large four" banks of Australia.
de-banking is an allegedly traditional banking practice in which financial institutions cancel the accounts of crypto companies, often without giving reasons. In one case, the committee heard the case of the founder of Bitcoin Babe, Michaela Juric, who was terminated her banking services more than 90 times during the seven -year term of her company.
"Austria believes that financial institutions are indiscriminately and widespread in entire sectors," wrote the regulatory authority in their guidelines. "The de-banking of legitimate and rightful companies can have a negative impact on individuals and companies. It can also increase the risk of money laundering and terrorist financing and have a negative impact on the Australian economy."
Austria has authority through financial services, including providers of crypto bonds, across the country.
Apra guideline
APRA - which supervises banks, credit cooperatives, insurance companies and pension plans - underpinned these guidelines and presented its expectations to regulated companies to pursue a "regulatory approach" when the associated risks for digital assets.
"Companies must also ensure that they comply with all behavioral and disclosure regulations that are managed by [The Australian Securities and Investment Commission]," wrote Apra.
At the beginning of this month byes, the Australian financial institutions asked to be careful when dealing with crypto, and announced the expected publication of the letter on Wednesday.
"In any case, you can innovate, but go carefully and in full knowledge of the risks," said BYRES at the time.
APRA develops a longer-term framework for crypto activities in Australia and has presented its three-year plan through a political timetable that will first consult his efforts to determine new and revised requirements for operational risk management.
The regulatory authority also searches for possible approaches for the "supervisory" regulation of stablecoins - cryptocurrencies, the value of which is bound to Fiat or raw materials - by finally bringing them into the framework of the regulatory framework for Stored Value Facilities (SVF).
SVFS relate to payment services that enable customers to store funds in a facility to make future payments.
Subject to the development of the broader legal and regulatory framework, Apra said that she intended to advise itself on regulatory requirements for large SVFS next year.
"APRA will continue to monitor industry trends and emerging risks in connection with crypto-assets, work with other regulatory authorities at home and abroad and provide further guidelines if necessary," it said.
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The Post Australian Regulator Advance Country’s Crypto Rules in Latest Guidance is not a financial advice.
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