Australian Banks Cautious About Their Crypto Plans During Market Crash
Australian banks remain interested in cryptocurrencies, claims an OSL study. OSL is an arm of the BC Tech Group of Companies. According to Mark Hiriart, an OSL top-level executive, who spoke to a local media outlet earlier this week, interest persists.
According to him, “every major bank globally is figuring out ways to incorporate digital currencies into their business.” Asset tokenization is more critical for banks than direct cryptocurrency trading services.
However, OSL withheld information about certain Australian banks. The collapse of FTX and subsequent effects have not deterred many investors.
Hiriart acknowledged that new capital might not be invested for a while but also said: “However, nobody is blinking from a technological point of view.”
“If anything, it will likely allow the [regulatory] guard rails to be tightened sooner than later. Of course, the latter would have happened if the FTX debacle didn’t happen.”
Commonwealth Bank And Cryptocurrency Offering
Commonwealth Bank CEO Matt Comyn announced last week that he was “shocked” by the collapse of FTX. However, he would not rule out entirely the creation of cryptocurrency-related businesses if there is a market for it.
A recent SMH report revealed that some industry experts doubted the bank after it started allowing crypto trading. The bank first announced a test of its crypto trading initiative for Australians in November 2021.
Nevertheless, Mark Nathan, a top-level executive with Regal Funds Management, argued that CBA might eventually not allow cryptocurrency trading as a service.
“It’s very likely they will decide this isn’t a segment they would like to offer their services given the regulatory issues banks are facing.”
Another prominent industry analyst, Angus Gluskie, also shared similar insights. He said the bank isn’t close to developing its crypto trading product.
Jarrod Martin, an analyst at Credit Suisse, argued that the Commonwealth Bank would be the ideal provider if the crypto sector is regulated. However, Australia’s crypto investors would exert cautiousness like investors globally as the crypto winter shows no sign of slowing down soon.
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