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Regulator Delays Commonwealth Bank of Australia Crypto Plans

Key ideas:

  • Red tape is slowing Commonwealth Bank of Australia’s (CBA) decision to provide crypto to retail customers.
  • The Australian Securities and Investment Commission (ASIC) has delayed the launch of its crypto app.
  • Last month, the Australian and New Zealand banking group minted its first Australian dollar-pegged stablecoin (A$DC0.

Australia has emerged as one of the most crypto-friendly jurisdictions, supporting digital asset innovation and the evolution of the web3.

In November, Australian Senator Jane Hume reportedly pointed out that DeFi is going nowhere and presents great opportunities for Australians.

According to the report, Hume said,

“If the past 20 or 30 years have taught us anything, it’s that all innovation begins with disruption and ends with a household name. Decentralized finance backed by blockchain technology will present incredible opportunities – Australia must not be left behind by fear of the unknown.

Hume is not alone, with the Australian government seeking to ensure that crypto and blockchain innovation thrives in the country.

Australian banks have also taken steps to support the drive to make Australia a center of innovation.

Commonwealth Bank of Australia Crypto Plans Hit by Bureaucracy

This week, news hit the wires of financial regulators preventing the Commonwealth Bank of Australia (CBA) from expanding its crypto services mobile app to retail customers.

Australia’s big-4 bank, CBA, aims to offer crypto services to 6.5 million retail customers.

The Australia Financial Review (AFR) reported on the bank’s regulatory problems on Wednesday, blaming the delay on the regulator’s new design and distribution powers.

According to the AFR, the CBA is in debate with the Australian Securities and Investment Commission (ASIC) over consumer protection, the bank’s target market and product disclosure statement.

Commonwealth Bank of Australia isn’t alone in innovating digital assets

Last month, FX Empire announced that Australia and New Zealand Banking Group (ANZ) had become the first Australian bank to mint an Australian dollar-pegged stablecoin, putting Australia at the center of asset innovation. digital.

ANZ has minted A$30 million with an “in-house built Ethereum VM-enabled smart contract deployed through the Fireblocks platform”.

ANZ is not alone in the race for stablecoins. The National Bank of Australia (NBA) is also in the midst of a stablecoin project.

As we have seen in other jurisdictions, regulators are restricting how platforms offer crypto services. Regulators seek to protect consumer interests. For Australia to continue to evolve as a center of crypto and blockchain innovation, red tape may need to be cut.