The collapse of California’s Silicon Valley Bank, along with US crypto-focused Silvergate and Signature banks, has prompted the financial regulator, the Australian Prudential Regulatory Authority (APRA), to investigate more into how local banks are exposed to cryptocurrency and startups.
Reports emerged this week that APRA is already asking banks to increase their reporting on crypto assets, to daily, so that the regulator can keep an eye on any vulnerabilities in the banking system.
Startup Daily spoke with Dr. Dimitrios Salampasis, director of fintech at Swinburne Business School, on APRA’s move, the collapse of SVB and the impact on the startup sector.
“Given the recent incidents, the regulator is pushing for more transparency, holding banking institutions accountable for their crypto-related transactions,” he said.
“Crypto exposure should be aligned with a banking institution’s risk appetite and risk tolerance mechanisms.
“This regulation puts additional pressure on banking institutions to reconsider crypto-related services and transactions with individual and institutional clients, also given the lack of a proper digital asset and crypto regulatory framework in Australia.”
Dr. Salampasis joins the Startup Daily show every second Wednesday as a bi-weekly commentator on fintech issues.
In addition to his role as a fintech capability leader and senior lecturer in fintech innovation and entrepreneurship at the Swinburne School of Business, he is also a visiting professor of fintech at the University of Québec in Canada, a blockchain and Blockchain Australia’s educator of the year.
Click the clip below to watch his interview with Startup Daily editor Simon Thomsen about APRA’s performance.
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