Australian financial authority, Australian Securities and Investments Commission (ASIC) created hurdles for Commonwealth bank for its crypto service offering for retail investors.
As per the local reports, the regulatory authority halted the Commonwealth banking app pilot that enabled consumers to buy, sell, and hold crypto assets.
The reason behind this regulatory scrutiny is its concern about the institutions’ “product disclosure statement, the target market for the product and consumer protection”.
ASIC commissioner Cathie Armour stated in the Australian Financial Review Cryptocurrency summit, “We’re interested in any sort of new innovation where we think there are real benefits of innovation being within our regulatory regime. There are a bunch of rules there that you need to follow.”
CBA revealed its plan to offer crypto-based services in November 2021, making it the first bank in Australia to announce crypto services. To achieve this vision, the bank has also joined hands with crypto-exchange Gemini and blockchain analysis firm Chainalysis.
After the announcement from the CBA, The Australian, and New Zealand Banking Group has also joined the crypto league in Australia. In March, ANZ announced that it has minted an Australian dollar (AUD) pegged stablecoin A$DC, making it the first Australian lender to issue a digital asset tied to the country’s currency.
Amid the bad news from the regulatory, the report suggests that CBA is working on a second pilot launch for digital assets offerings.
However, Commissioner Armour also stated in the official document, “The extent to which our regulatory regime applies to crypto-asset investment products depends on whether they fit within the legal framework for financial products and services.”
