Commonwealth Bank Of Australia Suspends Cryptocurrency Trading Testing

The endless possibilities and advantages of the cryptocurrency space have been a push for engagements. Several countries, brands, and individuals have plunged into the digital assets space to reap its massive profits. However, the recent price crash for almost all the tokens could serve as a discouraging stone on the path of commitment.

Before now, the Australian largest bank, Commonwealth Bank (CommBank), had planned to launch its crypto trading app. However, it seems that this has to pause this development. CommBank halted its release for its cryptocurrency trading pilot while citing regulation as its setback.

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CommBank announced its commitment to providing crypto-asset services that will suit its customers. This giant bank made this announcement in November 2021 as it mentioned its collaborations. The bank is to execute its plan with its partners Gemini and Chainalysis, both crypto exchange and blockchain analytics companies.

On Thursday, the CommBank CEO, Matt Comyn, stated that the bank is currently compiling its customers’ feedback. The Guardian Australia reported that Comyn mentioned that the bank requires strong crypto regulation before it could progress beyond its pilot phase.

Furthermore, the bank has already played down its pilot release. This was after witnessing the fall of Terra’s stablecoin UST. In addition, the recent price drop in the entire cryptocurrency market contributed to its getting cold feet.

CommBank Expresses Its Plans Regarding Cryptocurrency Sector

This Australia’s largest bank had laid its plans for 2022 to include the provision of crypto services. It had scheduled its pilot release to take off some weeks ahead. But CommBank has experienced some hitches in its proposals.

As a result, the Australian Securities and Investment Commission (ASIC) hasn’t approved the bank’s products since April 2022. The regulatory body says it needs to adhere to all the necessary rules before issuing an approval.

Moreover, Comyn, the CEO of CommBank, spoke of the enormous interest in the cryptocurrency space last week during a tech briefing. He noted that both regulatory bodies and other individuals seek measures to regulate cryptocurrency assets.

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The CEO acknowledged the outturn of the recent occurrences and confirmed the volatility associated with digital assets. Also, Comyn mentioned that the industry is receiving increased global interest based on its awareness and price swings.

The Commonwealth Bank CEO talked about his bank’s interest to contribute in cryptocurrency regulations. Comyn stated that they want to be at the forefront of impacting in ways that would produce required regulatory results.

He also said that the prior for now would center on kicking off their pilot plan. Hence, they will strive to prepare for this move using the right regulatory approach.

Featured image from Pexels, chart from TradingView.com