Commonwealth Bank of Australia will No Longer Debut Crypto Trading App

The level of cryptocurrency adoption in Australia is about to change following the recent announcement by the Commonwealth Bank of Australia (CBA). The bank had announced that it would debut a trial phase for cryptocurrency trading via its banking app in November 2021.

Commonwealth Bank of Australia delays launch of crypto services

The CBA had partnered with the Gemini cryptocurrency exchange and the Chainalysis blockchain analysis firm to extend its cryptocurrency offerings throughout the year. In a recent briefing, the CEO of the bank, Matt Comyn, said that the bank was awaiting customer feedback and regulatory clarity before proceeding with the launch of the service.

“As events of the last week have reinforced, it is clearly a very volatile sector that remains an enormous amount of interest. But alongside that volatility and awareness and I guess the scale, certainly globally, you can see there is a lot of interest from regulators and people thinking about the best way to regulate that,” Comyn said.

Cryptoassets are a highly volatile unregulated investment product.

The CBA is already experiencing delays in extending its cryptocurrency services to retail investors. It was reported that the Australian Securities and Investments Commission (ASIC) was also behind the decision to delay the pilot phase for CBA’s banking app. Comyn noted that the bank wanted to restart its pilot phase, but it was also planning to work on establishing a clear regulatory framework.

Crypto regulations in Australia

Australia recently proposed a regulatory framework that would include crypto taxes and investor protection and formulate a method to support the regulation of virtual banks, brokerage platforms and cryptocurrency exchanges.

The US Treasury recently released a Consultation paper collecting public feedback. The Treasury is looking toward collecting public views on licensing and custody services in the local crypto space.

Currently, 18.4% of the Australian population comprises people who own digital assets. With the country’s elections happening this month, the Prime Minister, Scott Morrison, is expected to compete with the leader of the opposing party, Anthony Albanese, on cryptocurrency matters and a wide range of issues.

The cryptocurrency sector is expected to attract much interest from the political sphere. A large share of potential votes has supported the creation of the Australian crypto sector. Some candidates in the election have even stated that they are willing to support the growth of the cryptocurrency space because a failure to do this will inhibit the growth of the space.

Cryptoassets are a highly volatile unregulated investment product.