To Due to the collapse of the Terra (LUNA) ecosystem, the crypto universe is experiencing an unprecedented crash. While crypto holders are hoping for a return to normalcy and an uptrend soon, elsewhere things seem to be going downhill. The refusal of many countries to adopt cryptos, in this case bitcoin, is already a blow. Recently, it was CommBank, Australia’s largest bank, which expressed doubts about cryptocurrency trading.
CommBank stops cryptocurrency trading pilot project
The cryptocurrency crash is taking on an unprecedented scale. Analysts scrupulously follow the price of cryptos in view of market developments. However, companies and large institutions are struggling to integrate and adopt cryptocurrencies. Why ? Because of their instability and lack of regulation.
After the Central African Republic, which took a step back from bitcoin, it is the turn of the general manager of the Commonwealth Bank to make his exit. On May 19, 2022, CommBank Chief Executive Matt Comyn said the bank will not move beyond the pilot phase until cryptos enjoy strong regulation according to the Guardian Australia.
Recall that in November 2021, Australia’s largest bank announced its desire to offer cryptographic services to its customers in partnership with Chainanalysis and Gemini.
As it planned to roll out more crypto services in 2022 thanks to the pilot project, CommBank was stopped in its tracks. The first concern is caused by the Australian Securities and Investments Commission (ASIC). Indeed, the latter reminds the banking institution that there are rules to follow and to which it must comply. Then comes the fall in prices in the cryptocurrency market following the collapse of the stablecoin Terra.
Regulation of the cryptocurrency industry in Australia?
For the director of CommBank as for many cryptocurrency users, digital assets represent a huge interest. However, the high volatility and lack of regulation makes this area risky and unreliable.
For its part, the financial institution would like to actively contribute to the regulation of cryptos. He says the bank’s wish at this stage is to restart the pilot project. However, there are certain aspects to review on the regulatory level.
The Australian government, of course, has already expressed its desire to regularize the cryptographic universe. In December 2021, he announced his intention to make the country a major cryptocurrency hub by reforming the crypto regulatory framework in 2022. In the meantime, the Federal Treasury allows comments until May 27, 2022 and consults regulations on cryptography. According to its statements, the agency should focus this year on the taxation of digital assets.
The cryptocurrency crash has a major impact on the different stages of digital asset adoption. Australia, like the other countries that have come together in El Salvador, recognizes interest in cryptos and is looking for a way to regulate their use.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.