Australia: APRA issues guidance regarding risk management and upcoming policy concerning crypto-assets

On 21 April 2022, the Australian Prudential Regulation Authority (APRA) released a letter entitled "Crypto-Assets: Risk management expectations and policy roadmap". The letter elaborates on regulatory expectations towards entities handling crypto-assets. Such entities are expected to conduct comprehensive risk assessments, act in conformity with the "Prudential Standard CPS 231 Outsourcing or Prudential Standard SPS 231 Outsourcing" when engaging with third parties, and disclose distribution plans and product designs to the relevant authorities. In addition, the APRA announced policies regarding crypto-activities, operational risks, and stablecoins.