The second pilot phase of the crypto services projects initiated by the Commonwealth Bank of Australia (CBA) has been halted until further notice. Those already in the first round of the testing have been denied access.
CBA CEO Matt Comyn is adamant that the bank will only move ahead with the second round of the crypto service testing on the bank’s app once the issue with the regulatory authorities has been cleared.
According to Cointelegraph, the CBA’s CEO is reported to have noted that he will approve the continuation of the second pilot phase of the project as he is still awaiting the regulatory green light to move forward.
Matt Comyn also revealed that the CBA is working closely with other regulatory agencies because the latest product is a considerable investment that the bank has set to achieve.
Comyn further added that the CBA intends to restart the second phase. However, a couple of things still need to be ironed out from the regulatory point of view to ensure that the bank complies with the appropriate guidelines.
The Recent Crypto Market Meltdown is an Issue to Consider
According to Comyn, last week’s price fluctuations in the crypto market appear to back the delay on the part of the authorities, even though the second pilot round of the project was already halted in April following the reluctance of the regulators to provide active bank users access to digital tokens.
Likewise, the Australian Securities and Investments Commission (ASIC) also opposed CBA’s application because the bank did not consider consumer protection in its latest service.
Comyn admitted that cryptocurrency is a volatile asset that needs more information for people to come to terms with its application in the financial sector. There is widespread interest from various financial regulators in how best to regulate it.
Changes are Imminent
Comyn believes that the Federal Election scheduled to begin on May 21 will significantly impact the crypto industry regarding regulatory changes and subsequent expansion of the industry. The CBA CEO noted that a regime change will usher in a wave of optimism in the industry and that it might become the new government’s focus if it wants to get the support of the crypto industry players.
However, Dimitrios Salampasis, an entrepreneurship lecturer at Swinburne University, disclosed to the Guardian that CBA might need to tread with caution in case of a reputational scandal.
Dr. Salampasis referred to the recent collapse of the Terra network, which triggered the price fluctuations of the entire crypto market. According to Dr. Salampasis, balancing all operational processes of CBA is needed when uncertainty is the order of the day.
Having regulatory clarity and brand uniqueness will play a critical role in maintaining the optimal performance of the business structure of the Commonwealth Bank of Australia.
The bank was the first major financial institution in Australia to introduce crypto services to its customers via its mobile app.