Commonwealth Bank’s Launch of Crypto Services Halted by Red Tape -Breaking
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© Reuters. Commonwealth Bank’s Launch of Crypto Services Halted by Red Tape- The Commonwealth Bank of Australia’s (CBA) planned launch of crypto services is hit with a regulatory hurdle.
- The Australian Securities and Investment Commission (ASIC) covered the launch of CBA’s cryptocurrency services in regulatory red tape.
- ASIC claims that the launch was covered by red tape based on consumer protections and disclosures about the product.
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.
It aims to become Australia’s first bank to offer cryptocurrency services to the bank’s 6.5 million customers. CBA has been piloting cryptocurrency projects last year. CBA may have to continue with the pilot program while they address regulatory issues.
ASIC claims that the launch was covered by red tape based on consumer protections and disclosures about the product.
CBA and ASIC had worked together closely before this announcement from ASIC.
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.”
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