The CBA (Commonwealth Bank of Australia) has halted the plans thereof for the second pilot project for services related to cryptocurrencies indeterminately and terminated the reach to those present in the initial testing round. A transcript of the bank’s Tuesday briefing notes that the CEO Matt Comyn stated to be even now pursuing some regulatory clarity in the respective matter.
He added to be operating with several regulators in close cooperation, for an adequate solution to the very product. He also mentioned that the objective of the bank would still be to resume the pilot, however, a couple of things even exist that the bank authorities intend to examine through a regulatory perspective to ensure that the project is suitable and can be carried out safely.
Apart from this, Comyn disclosed that a Treasury filing for the respective project is in advance under review, nonetheless, no anticipated timeline was shared by him related to the completion of the program. He moved on to say that the wild volatility of the previous week additionally points toward the requirement for the dragged procrastination, although the second pilot project had in advance been frozen this April following the pulling-back of the financial regulators in terms of providing regular consumers with a convenient reach to crypto.
The ASIC (Australia Securities and Investment Commission) raised objections over the services of CBA regarding the factor that there was a non-availability of customer protections. In his words, it is unambiguously clear that the sector is greatly volatile. However, parallel to this a lot of interest is being shown by the people as well as the regulators in this field on a global level. In this respect, both parties are pursuing to get the space regulated in the best way.
As suggested by Comyn, the bank was waiting for the Federal election result on 21st May. On the domination of a unique regime, it could incorporate some wide changes in the landscape of crypto regulation, which – as Comyn puts it – will depend on the entering authorities to contemplate it. Dimitrios Salampasis, a lecturer for entrepreneurship and leadership at Swinburne University, mentioned that in the matter of reputational impairment, the course of action by the CBA would be slow.
Talking about the recent value collapse throughout the crypto markets because of the Terra crash, Dr. Slampasis asserted, that regulatory clarity, brand equity, and balancing risk are the chief factors to curtail disruption in the present business model of CBA.