Crypto Analytics

Report – Crypto News

  • Despite an “overwhelmingly positive” reception to the app’s crypto feature, CBA has reversed its decision, citing volatility following Terra’s collapse
  • The bank previously partnered with Gemini and Chainalysis to integrate their services into the bank’s native app

Australia’s largest bank by total assets has stopped rolling out a pilot that had briefly allowed select users to make in-app crypto purchases.

According to a report by The guard On Thursday, the Commonwealth Bank (CBA) decided to pause the pilot and gave no timeframe for the program to resume.

The bank became the first major financial institution in country to allow certain customers to make in-app purchases through the CommBank banking app in November. Previously, customers were allowed to buy up to ten cryptocurrencies, including bitcoin and ether.

As part of the project, CBA partnered with Gemini to use their crypto exchange and custody service, which was integrated into the app via APIs. Blockchain analytics firm Chainalysis also participated in the project, offering to help the bank’s compliance teams monitor crypto crimes.

Despite the pilot’s “overwhelmingly positive” reception and popularity, current market woes — including the disruptions caused by Terra last week — accounted for a large part of the bank’s decision to shut down its crypto services.

Blockworks attempted to contact Chainalysis, Gemini, and CBA but received no response as of press time.

We intend to continue to play a leading role in contributing to this and shaping the most appropriate regulatory outcome,” CBA Chief Matt Comyn said in the report. “We still intend to restart the pilot at this point, but there are still a few things we want to work through at the regulatory level to ensure this is most appropriate.”

Comyn said at the time the pilot launched that he believed his institution would play an “important role” in meeting growing demand from around 900,000 clients interested in investing in the burgeoning asset class.

Australia is slowly moving forward with its crypto regulation and has proposed legislation introducing a licensing system, as well as measures related to custody, decentralized autonomous organizations (DAOs) and taxation. With the country’s federal elections on Friday possibly deciding an all-new government, regulation of the emerging market could well be in question.

Some regulators are trying to avert the matter after issuing guidance for companies involved with crypto assets late last month. Two weeks earlier, the head of Australia’s regulator, Wayne Byres, had also urged banks to tread carefully — although crypto isn’t the only industry suffering from headwinds caused by stalled economies around the world.

Global equity markets continue to face significant selling pressures caused by macroeconomic factors including rising inflation and raising interest rates to combat it. Crypto has not been able to avoid this contagion as it has seen significant sell-offs over the past few months.

“As the events of the past week have reinforced, it is clearly a highly volatile sector that continues to be of tremendous interest,” Comyn said, referring to the aftermath of the Terra Saga. “But alongside that volatility … you see there’s a lot of interest from regulators and people thinking about how best to regulate this.”

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Post Top Australian Bank Hires Crypto Pilot Amid Market Downturn: Report Is Not Financial Advice.

Source: Crypto News Austria

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