The Australian Prudential Regulation Authority has stated that it is necessary to develop blockchain and cryptocurrency regulation in order to promote innovation and protect the interests of users.
Many financial companies are ready to modernize their business processes by introducing blockchain into them and using digital assets. The Australian Prudential Regulatory Authority (APRA) believes that the development of the latest technologies should develop specific guidelines that will allow these organizations to apply innovations without compromising the safety of users. The agency is also urging other government bodies not to ignore the billions of dollars of cryptocurrency market.
APRA supports the Basel Committee on Banking Supervision (BCBS) approach to regulating the cryptocurrency industry. BCBS believes that if digital assets involve the same risks as real estate or traditional finance, then cryptocurrencies should comply with the requirements that apply to this area or to traditional financial instruments.
The Australian regulator noted that the introduction of blockchain to digitize trade finance transactions could accelerate the development of stricter regulation. Therefore, this year APRA plans to set up a task force to explore the use cases for “suptech” (pension technology) and create “regtech” (regulatory framework for regulating fintech, digital wallets and protecting user data).
Recall that in 2020, the Australian government announced its readiness to allocate $ 800 million from the federal budget for the development of the blockchain and the expansion of opportunities for small businesses in the country.
