Commonwealth Bank's Crypto Services Face Regulatory Delays: Report
The Australian bank was testing a program that allowed customers to hold and use crypto on its app.
Apr 7, 2022 at 11:51 a.m. UTCUpdated May 11, 2023 at 6:01 p.m. UTC
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The Commonwealth Bank of Australia's pilot program to allow users of its banking app to hold and use crypto has been slowed down by the country's financial service regulator, according to a report on Wednesday.
- Australian Securities and Investments Commission (ASIC) is wrangling with the bank over the product's disclosure statement, the target market for the product and consumer protections, sources familiar with the process told the Australian Financial Review.
- "There are a bunch of rules that you need to follow," ASIC commissioner Cathie Armour recently said at The Australian Financial Review Cryptocurrency Summit talking about ASIC's regulatory regime, according to the report.
- Last November, the bank announced it would offer crypto services to customers, which would have made it the first bank in Australia to do so.
- The bank partnered with crypto exchange Gemini and intelligence firm Chainalysis to offer a crypto exchange and custody service. Customers would have access to 10 digital assets, including bitcoin and ether.
- Australia is the world’s third-largest adopter of crypto, a survey conducted in October found.
- The Commonwealth Bank of Australia and ASIC weren't immediately available to comment.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.