Commonwealth Bank Puts Crypto Trading Test On Hold Amid Regulatory Uncertainty

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The Chief Executive Officer of the Commonwealth Bank of Australia (CBA), Matt Comyn, is certain that his institution will proceed with the second trial of cryptocurrency services on its mobile app once the regulatory ambiguity is resolved.

Second Test On Crypto Trading Placed On Hold

The CBA has decided to shelve its plans for a new pilot program of cryptocurrency trading services indefinitely. It has also terminated access to the services tested in the first round.

In a transcript sent by the company to Cointelegraph, Comyn stated that he was waiting for regulatory clarification. In addition to that, he said that working with many authorities very closely to be sure the project is on the right track.

“At this point, it is still our aim to continue the pilot program; however, there are still several items that we have to go through with the regulatory authorities to ensure that we are doing so in the most suitable manner.”

Comyn said a Treasury filing for the program is currently being evaluated; however, he did not provide any information about the anticipated completion date.

Although the second trial program had been placed on hold since April when banking authorities protested at offering regular bank customers easy access to cryptocurrency, Comyn stated that the high volatility over the previous week seemed to confirm the necessity for the long wait. 

The Australia Securities and Investment Commission (ASIC) vehemently disagreed with the services provided by the CBA because there were insufficient measures in place to protect customers.

He said, “It is a highly volatile market that continues to attract an incredible amount of attention. But in addition to that instability and awareness, and the magnitude, definitely on a global level, you can see that there is a lot of attention from regulators.”

Comyn Says “A New Government Might Change The Crypto Regulatory Framework”

According to Comyn, crypto will be a topic for the future government to look at. If a new administration takes power, it might mean significant changes in the regulatory environment around cryptocurrencies. Comyn also implied the bank was waiting for the federal election results that took place on Saturday.

In an interview with The Guardian, Dr Dimitrios Salampasis, who teaches leadership and entrepreneurship at Swinburne University, said that CBA could proceed cautiously to avoid damaging its brand.

Dr Slampasis stated that “managing risk, brand image, and regulatory clarification will be key to reducing interruption in CBA’s business model.” This statement was made while considering the recent market collapse that occurred across the cryptocurrency markets as a result of the collapse of Terra (LUNA).

In 2018, the CBA was the first major Australian bank to provide cryptocurrency-related offerings via its mobile app. During the pilot program, it was made clear that participants would have access to all 6.5 million of the app’s users once it was fully implemented. As of right now, such plans are suspended indefinitely until further notice.

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