The Australian top bank stops the crypto pilot project in the middle of the market depressor: Report

The Australian top bank stops the crypto pilot project in the middle of the market depressor: Report

Australia's largest bank based on balance sheet total has set the introduction of a pilot project that briefly made selected users possible in-app crypto purchase.

according to a report by der Wächter On Thursday, Commonwealth Bank (CBA) decided to interrupt the pilot project and not specified a time frame for the resumption of the program.

The bank became the First great financial institutions to enable certain customers in November To make in-app purchases via the Commbank banking app. Previously, customers were allowed to buy up to ten cryptocurrencies, including Bitcoin and ether.

As part of the project, CBA entered into a partnership with Gemini to use its crypto exchange and custody service, which was integrated into the app via APIs. The blockchain analysis company Chainalysis also took part in the project and offered to support the bank's compliance teams in monitoring cryptoco.

Despite the "overwhelmingly positive" recording and popularity of the pilot project, the current market problems - including the disorders caused by Terra last week - have identified a large part of the bank's decision to hire their cryptodes.

Blockworks tried to contact Chainalysis, Gemini and CBA, but did not receive an answer until the time of going to press.

" We want to continue to play a leading role in making contributions and making the most suitable regulatory result," said CBA boss Matt Comyn in the report. "At this point we still intend to restart the pilot project, but there are still a few things that we want to work through on a regulatory level to ensure that this is best suited."

comyn said that he believed that his institution would play an “important role” to satisfy the growing demand of around 900,000 customers who are interested in investing in the aspiring asset class.

Australia is slowly driving its cryptor regulation and has proposed laws to introduce a license system as well as measures in custody, decentralized autonomous organizations (DAOS) and taxation. In view of the Bundestag elections in the country, which may decide on a completely new government, the regulation of the emerging market could be questioned.

Some supervisory authorities try to avert the matter after they have published guidelines for companies that have to do with crypto-assets at the end of the last month. Two weeks earlier, the chairman of the Australian supervisory authority Wayne BYRES also warned the banks to proceed carefully - although Krypto is not the only industry that is suffering from headwind that is caused by a standstill.

The global stock markets continue to be exposed to considerable sales pressure caused by macroeconomic factors, including increasing inflation and increasing interest rates to combat them. Crypto could not avoid this infection because there have been significant sales in the past few months.

"As the events of the past week have reinforced, it is clearly a very volatile sector that is still of enormous interest," said Comyn, referring to the consequences of the Terra saga. "But besides this volatility ... you see that there is a great interest from supervisory authorities and people who think about how best to regulate this."

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The contribution TOP Australian Bank hires crypto pilot in the middle of the market depression: the report is not a financial advice.