The Australian Prudential Regulation Authority (APRA), the country's financial regulator, has asked local banks to submit reports on their exposures to cryptocurrencies and crypto-related startups.
The move came amid rising concerns about the contagion effect of the U.S. banking crisis.
Aussie banks will now need to provide daily updates on crypto assets and transactions to the APRA.
- The regulator also wants the regional banks to improve their reporting on crypto.
- With this move, APRA mainly aims to learn more about banks' exposures to cryptocurrencies and acquire more insight into the vulnerabilities in the system.
- Reserve Bank of Australia Assistant Governor Chris Kent recently said the country's banking system is unquestionably strong.
In March, the U.S. experienced three crypto-friendly bank collapses with the shutdown of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within just a week.
- The consecutive collapses have also created a contagion effect for banks in other countries, including Swiss banking giant Credit Suisse.
