ASIC’s Financial Innovation Regulator Meet up on 28 July 2022 covered a wide range of topics related to financial services innovation including the Consumer Data Right, payments, aridicial intelligence and crypto-assets.
You can see a recording on YouTube here.
I was particularly interested in the comments by Jane Lin from the ACCC around the 51 minute mark in respect of AI, machine learning and algorithms; the ACCC treats all of these as potential forms of misleading conduct.
APRA’s Renee Roberts also discussed (around the 1 hour 13 minute mark) APRA’s view of crypto-assets: firstly that they are not a currency and secondly their appropriate risk weighting.
She said that if the crypto-asset was a tokenised traditional asset, it would have the same risk weighting as the underlying asset as well as the infrastructure risk of the underlying technology.
If there was no real underlying asset, the risk weighting could be as high as 1250%. In other words it would be close to junk if not worse. Regulated banks would be discouraged from holding it.
I discuss the regulation of financial services technology in my video here.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
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