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The Commonwealth Bank of Australia (CBA) has put its plans for a second crypto trading pilot program on hold indefinitely, cutting off access to individuals who participated in the previous round of testing.
CBA handed Cointelegraph a transcript of a Tuesday bank briefing in which CEO Matt Comyn stated that regulatory clarification was still pending. He also stated that he was "working closely with a variety of regulators on the right treatment of this specific product," as one might expect.
"At this point, our objective is to continue the pilot, but there are a few of things we need to iron out on the regulatory front to make sure that's the best option."
Comyn stated that a Treasury filing for the program is now being reviewed, but he did not provide an estimated completion date.
Even though the second pilot program had already been placed on hold by April when banking authorities objected at allowing normal bank users easy access to crypto, Comyn added that this week's high volatility looked to confirm the necessity for the extended wait. Consumer safeguards were missing from the CBA's services, according to the Australian Securities and Investment Commission (ASIC).
"It is certainly a very volatile area with an incredible lot of interest," he remarked.
"But, with that volatility and awareness, and, I suppose, the magnitude, you can see there is a lot of attention from regulators and others thinking about the best approach to govern it," says chevalier.
Comyn also implied that the bank was waiting for the outcome of Saturday's Federal election. If a new administration takes power, it might bring significant changes to the crypto regulatory environment, which Comyn believes "will be a priority for the future government to consider."
Dr. Dimitrios Salampasis, a leadership and entrepreneurship lecturer at Swinburne University, told The Guardian that CBA may be moving cautiously to avoid reputational harm.
"Balancing risk, brand equity, and regulatory clarity will be crucial so as to limit disruption in CBA's present business model," Dr. Slampasis stated, referring to the recent price slump throughout the crypto markets caused by the collapse of Terra (LUNA).
Last November, the CBA became Australia's first major bank to provide cryptocurrency services through its mobile app. The trial program offered access to the app's 6.5 million users once it was completely implemented. Those plans are currently on hold indefinitely.
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