Commonwealth Bank’s Launch of Crypto Services Halted by Red Tape

The Commonwealth Bank of Australia’s (CBA) efforts to expand the services on their mobile app to include cryptocurrency-related services has been hit with another regulatory hurdle as financial regulators stand in the way of the launch process.

The Australia Financial Review (AFR) reported on April 6 that the Australian Securities and Investment Commission (ASIC) has covered the launch of CBA’s cryptocurrency services in regulatory red tape.

The bank aims to become the first Australian bank to give its 6.5 million users access to cryptocurrency services. Last year, CBA had piloted cryptocurrency projects that it had planned to introduce to its client base. However, it looks like CBA will have to move towards a second pilot while they deal with the new regulatory hurdle.

According to ASIC, the launch has been covered with red tape on the basis of consumer protections regarding the target market and product disclosures.

Prior to this recent announcement by ASIC, CBA had been working closely with ASIC and several other regulatory bodies within the Australian government building up to the planned launch of their services.

ASIC commissioner, Cathie Armour, spoke at the Australian Financial Review Cryptocurrency Summit on April 6 and took the opportunity to explain her commission’s recent focus on cryptocurrency, despite the argument that it falls outside of ASIC’s purview.

Armour had added that the commission was concerned, and said that “Consumers may be investing in an environment where they are not afforded the same level of protection that applies to financial products and services.”