Financial regulators have stymied Commonwealth Bank of Australia’s (CBA) ambitions to expand its Crypto services mobile app to its retail client base, according to reports this week.
CBA, an Australian big four bank, plans to offer cryptocurrency services to all of its 6.5 million retail customers.
On Wednesday, the Australia Financial Review (AFR) reported on the bank’s regulatory troubles, citing the regulator’s expanded design and distribution capabilities as the reason for the delay.
CBA is in a dispute with the Australian Securities and Investment Commission (ASIC) regarding consumer protection, the bank’s target market, and product disclosure statements, according to the Australian Financial Review.
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FX Empire revealed last month that Australia and New Zealand Banking Group (ANZ) became the first Australian bank to issue a stablecoin tied to the Australian dollar, putting Australia at the forefront of digital asset innovation.
With an in-house ‘designed Ethereum Virtual Machine compliant smart contract deployed over the Fireblocks platform,’ ANZ made 30 million A$DC.
In the stablecoin race, ANZ isn’t alone. The National Bank of Australia (NBA) is developing a stablecoin as well.
Regulators are cracking down on how platforms provide crypto services, as we’ve seen in other nations. Consumer interests are being protected by regulators. Red tape may need to be removed if Australia is to continue to evolve as a center of crypto and blockchain innovation.
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