Today the Guardian reported that Commonwealth Bank Australia (CBA) had paused its cryptocurrency app “amid turmoil and uncertainty in the market.” However, Australia’s biggest bank ended its first pilot months ago, so the recent turmoil caused by the Terra stablecoin collapse was not the reason.
In November, CBA announced plans for its crypto pilot to offer them as an investment option to its customers. It partnered with the U.S.-based Gemini cryptocurrency exchange, founded by the Winkelvoss twins. The bank also invested in Gemini’s funding round the same month.
The Australian Financial Review (AFR) reported in early April that the bank had completed its initial pilot and was in negotiations with ASIC, the securities regulator, about the wording of disclosures as well as the target market and consumer protections. Before launching a second pilot, apart from ASIC, CBA is also discussing requirements with the Australian Taxation Office, transaction reporting service AUSTRAC and the Australian Competition and Consumer Commission.
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