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Regulator Delays Commonwealth Bank of Australia Crypto Plans

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·2 min read
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Key Insights:

  • Red tape slows Commonwealth Bank of Australia’s (CBA) move into delivering cryptos to retail customers.

  • The Australian Securities and Investment Commission (ASIC) has delayed the launch of its crypto app.

  • Last month, Australia and New Zealand Banking Group minted its first Aussie Dollar pegged stablecoin (A$DC0.

Australia has evolved into one of the more crypto-friendly jurisdictions, supporting digital asset innovation and the evolution of web3.

In November, Australian Senator Jane Hume reportedly pointed out that the DeFi is not going anywhere and presents excellent opportunities for Australians.

According to the report, Hume stated,

“If the last 20 or 30 years have taught us anything, it’s that all innovation begins as disruption and ends as a household name. Decentralized finance underpinned by blockchain technology will present incredible opportunities – Australia mustn’t be left behind by fear of the unknown.”

Hume is not alone, with the Australian government looking to ensure that crypto and blockchain innovation thrives in the country.

Australian banks have also taken steps to support the drive to make Australia a center of innovation.

Commonwealth Bank of Australia Crypto Plans Hit Red Tape

This week, news hit the wires of financial regulators impeding Commonwealth Bank of Australia (CBA) plans to expand its crypto services mobile app to its retail client base.

Australian big-4 bank, CBA, aims to offer crypto services to all 6.5 million retail customers.

The Australia Financial Review (AFR) reported the bank’s regulatory woes on Wednesday, attributing the delay to the regulator’s new design and distribution powers.

According to the AFR, CBA is in debate with the Australian Securities and Investment Commission (ASIC) over consumer protection, the bank’s target market, and product disclosure statement.

Commonwealth Bank of Australia Is not Alone in Digital Asset Innovation

Last month, FX Empire reported Australia and New Zealand Banking Group (ANZ) became the first Aussie bank to mint an Aussie Dollar pegged stablecoin, placing Australia at the center of digital asset innovation.

ANZ minted 30 million A$DC with an in-house ‘built Ethereum Virtual Machine compatible smart contract deployed through the Fireblocks platform.’

ANZ is not alone in the stablecoin race. The National Bank of Australia (NBA) is also in the midst of a stablecoin project.

As we have seen in other jurisdictions, regulators are clamping down on how platforms offer crypto services. Regulators are looking to protect consumer interests. For Australia to continue evolving as a center of crypto and blockchain innovation, red tape may need to step aside.

This article was originally posted on FX Empire

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