Australia’s Largest Bank Halts In-App Cryptocurrency Trading Facility as Sell Off Intensifies
Due to the volatility and unpredictability of the market, the biggest bank in Australia has decided to suspend the introduction of cryptocurrency trading via its mobile app. In November, Commonwealth Bank said that it intends to implement a feature inside its mobile app that would enable clients to purchase and trade cryptocurrencies.
Customers will be able to purchase up to ten different cryptocurrencies, such as bitcoin, Ethereum, and Litecoin, if the idea goes according to plan. A first pilot was supposed to be conducted by the bank before “gradually introducing additional services to more consumers in 2022.”
Despite this, Guardian Australia has acknowledged that the rollout has been halted, and there is currently no estimated date for when it will begin again. Those who participated in the original test of the app were unable to continue trading cryptocurrency over the platform after it was discontinued. Matt Comyn, the chief executive officer of the Commonwealth Bank, said that the firm was working on the input received from clients, but he suggested that further regulation will be required before moving on to the next step.
In a tech-related discussion earlier this week, he stated: “As the developments of past week have shown once again, this is unquestionably a very volatile market that continues to attract an incredible amount of attention. But in addition to that fluctuation and knowledge and, I suppose, the magnitude, definitely on an international market, you could see that agencies and individuals are constantly thinking about the most effective approach to govern that.”
The United States Department of the Treasury is now accepting public comments through May 27th as part of a regulatory review consultation. Comyn gave the impression that the new administration that will be established after the poll would concentrate on “how to really correctly govern the industry.”
He stated “We would really like to continue playing a leadership role in offering input into that and sculpting the regulatory result that is most suitable. At this point, it is still our aim to relaunch the trial program; however, there are still a number of items on the regulatory side that we would like to sort through in order to ensure that this will be done in the most proper manner.”
The cryptocurrency market is now through a turbulent period. In the past few days, the failure of the stablecoin Terra led to a “crypto meltdown,” which effectively reduced the value of the vast majority of significant cryptocurrencies by anywhere in the range of 15% to 25%.
According to Dr. Dimitrios Salampasis, a professor in fintech leadership and entrepreneurship at Swinburne University, huge incumbents like CBA are afraid of the possible brand harm that might result from involvement with cryptocurrency. He stated that it was about striking a balance between the risks involved and that the CBA would continue to work on it in the backdrop to maintain its first-mover benefit.
He said “Because the projected inbound and outward risk for CBA is certainly greater after beginning on such a mission, the tone of restraint is also a warning to investors, shareholders, and network participants. At least at this time, I do not think that the initiative has reached a standstill. However, striking a balance between risk, brand recognition, and legal clarification will be essential if CBA is to keep its existing business model operating as smoothly as possible.”
The current decline in the value of cryptocurrencies may also call into doubt the latest arrangement for $25 million that was announced in January between the crypto exchange site Crypto.com and the Australian Football League. In accordance with the terms of the agreement, Crypto.com will be granted sole name rights for the AFL Score Review shown throughout the premiership and last series games. The Australian Football League (AFL) declined to elaborate on the agreement, citing its policy that it does not disclose commercial agreements. A representative for Crypto.com declined to comment on whether the transaction was paid for using fiat money or crypto, but they did state that the firm remains dedicated to the collaboration.
“Crypto.com has not wavered in its dedication to the teams and athletes it supports. Our company is in a strong financial position, and they are multiyear contracts; both of these factors will continue to play a vital part in our objective to hasten the shift to cryptocurrency throughout the globe.”
Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.