Commonwealth Bank’s plans to expand crypto services to 6.5M delayed by red tape

Financial regulators are standing in the way of expanded crypto services on Commonwealth Bank of Australia’s (CBA) mobile app. In an Australian first, the bank aims to grant all of its 6.5 million users access to cryptocurrency services.

The CBA’s crypto products started a pilot of the services late last year after which it hoped to open up to all of the users of its app, however it now appears to be moving toward a second pilot. The Australia Financial Review (AFR) reported on April 6 that the Australian Securities and Investment Commission (ASIC) has tied up the launch with red tape.

ASIC objects to the launch on the basis of consumer protections regarding the target market and product disclosures. CBA has been working with ASIC and several other regulatory bodies within the Australian government in order to launch the services.

Speaking at the Australian Financial Review Cryptocurrency Summit on April 6, ASIC commissioner Cathie Armour explained her commission’s recent focus on crypto despite arguments that it falls outside ASIC’s purview. She said that although crypto assets are not necessarily financial products which the commission can regulate, it was concerned:

“Consumers may be investing in an environment where they are not afforded the same level of protection that applies to financial products and services.”

In fighting back against new guidelines from ASIC that prohibit much of the work financial influencers do, government Senator Andrew Bragg stated that ASIC’s application of rules for financial products cannot be applied to crypto assets because cryptocurrency is not a financial product under Australian law.

In her speech Armour commented on ASIC’s ability to truly regulate crypto assets “depends on whether they fit within the legal framework for financial products and services,” which she says is “a matter for Parliament.”

Armour added that she sees “real benefits of innovation being within our regulatory regime,” but cautioned that: “There are a bunch of rules there that you need to follow.”

“There are a bunch of rules there that you need to follow.”

The announcement of the CBA’s intention to launch crypto services created a buzz last November as it was the first of the country’s “big four” banks to do so. Blockchain Australia CEO Steve Vallas told Cointelegraph that the move would be “extraordinarily important.”

Related: Aussie convenience store giant to accept crypto at 170 outlets

To make the product a reality, the CBA partnered with offshore crypto exchange Gemini and blockchain analysis firm Chainalysis. Once fully launched, the product will include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

All Dutch and English crypto news!

Duur grapje: 10.000 bitcoin voor 2 pizza’s

Wist je dat iemand ooit 10.000 bitcoins heeft betaald voor twee pizza's? Op het moment van de transactie leek het een leuk idee: de waarde...

Crypto gaming and the monkey run: How we should build the future of GameFi

You've seen it before. An amazingly talented gaming founder teams up with a top-tier studio, promising to create a wondrous game experience built on the...

How to incorporate a DAO and issue tokens to be ready to raise money from VCs

What is a DAO? A DAO, or decentralized autonomous organization, is an online-based organization that exists and operates with no single leader or governing body. DAOs...

Web3, NFTs, Metaverse: The tools for a truly decentralized future

Attendees to the BlockDown Croatia 2022 festival were witness to Cointelegraph's discussions around sociopolitics of the Web3 ecosystem, non-fungible tokens (NFT) and the Metaverse. It...

Beste exchanges

Koop je crypto bij Bitvavo