The collapse of Silicon Valley Financial institution in California, together with US crypto-focused Silvergate and Signature banks, has provoked monetary regulator the Australian Prudential Regulatory Authority (APRA) to ramp up scrutiny of how uncovered native financial institution are to cryptocurrency and startups.
Stories emerged this week that APRA is already asking banks to extend their reporting on crypto property, proper as much as every day, to ensure that the regulator to regulate any banking system vulnerabilities.
Startup Each day spoke to Swinburne Enterprise College director of fintech Dr Dimitrios Salampasis about APRA’s transfer, the collapse of SVB, and the affect on the startup sector.
”Contemplating the current incidents, the regulator is pushing for extra transparency, holding banking establishments accountable for his or her crypto-related transactions,” he mentioned.
“Crypto publicity ought to be aligned to the chance urge for food and danger tolerance mechanisms of a banking establishment.
“This scheme places further stress to banking establishments to rethink crypto-related providers and transactions with particular person and institutional clients additionally contemplating the shortage of a correct digital property and crypto regulatory framework in Australia.”
Dr Salampasis is becoming a member of the Startup Each day present as a fortnightly commentator on fintech points, each second Wednesday.
Alongside his roles as fintech functionality chief and senior lecturer of fintech innovation and entrepreneurship at Swinburne College of Enterprise, he’s additionally a visiting professor of fintech on the College of Québec in Canada, a blockchain and Blockchain Australia’s educator of the 12 months.
Click on on the clip under to observe his interview with Startup Each day editor Simon Thomsen on the APRA crackdown.
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