Australia’s Commonwealth Bank slams brakes on crypto services

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The Commonwealth Bank of Australia (CBA) has paused the launch of crypto trading on its app amid heightened volatility in the crypto market, The Guardian reported.   

See related article: Commonwealth Bank first in Australia to offer crypto trading

Fast facts

  • Australia’s largest bank announced its plans to allow customers to trade up to 10 cryptocurrencies, including Bitcoin and Ethereum, in November.

  • The plan was in its early pilot stage, and users already enrolled in the pilot will be allowed to continue to trade through the platform.

  • “[Crypto] is clearly a very volatile sector that remains an enormous amount of interest,” CBA CEO Matt Comyn said in a tech briefing, adding more regulation is needed in the space before continuing the plan.

  • The country’s Treasury has opened a consulting paper for public submissions on licensing and custody.

  • Australia’s federal election is scheduled for Saturday, May 21, and while cryptocurrency has not been a major campaign issue, the incumbent Liberal Party has taken steps toward regulating the industry.

  • After falling in line with traditional stocks on Thursday, most major tokens were in the green in the past 24 hours, with Bitcoin and Ethereum gaining roughly 4% and 3% to trade at US$30,205 and US$2,013 respectively at press time.

See related article: Australia announces biggest overhaul to payments in 25 years — eyes now set on crypto