CBA sees rules in crypto on the way

COMMONWEALTH Bank boss Matt Comyn says the collapse of cryptocurrency platform FTX will trigger more scrutiny and regulation of the entire sector, as the nation’s biggest bank takes a cautious approach to potential crypto trading via its platforms.

Almost 30,000 local FTX users are entangled in the company’s demise and are locked out of their accounts after it fell into administration.

Kordamentha – called in on Friday by FTX founder Sam Bankman-fried – is yet to finalise how much money is owed by the company, and the events mark the latest blow to the volatile sector.

“The latest significant collapse will bring further scrutiny, inevitably regulation and transparency, and obviously we are supportive of that in the interests of improving and strengthening customer protection,” Mr Comyn said.

CBA has been in prolonged negotiations with the corporate regulator over a move to offer its customers crypto trading services. A year ago, the bank made a small minority investment in regulated crypto exchange and custodians Gemini, as it participated in the firm’s first ever equity raise.

The investment followed CBA’S announcement that it would offer customers the ability to buy, sell and hold crypto assets, directly through the Commbank app, leveraging Gemini’s platforms. Despite a pilot, that is yet to start.

Asked about deliberations and regulatory engagement on that project, Mr Comyn would not confirm if the move was still being actively worked on.

“We continue to adopt a cautious approach,” he said in an interview. “We’ve had a lot of engagement, which we’ve found to be very useful and constructive with regulators.

“It’s an area where there is enormous interest and investment, from both Australians and clearly around the world … recent events highlight not only the volatility but also the risks in a sector which globally I think has been very challenging to regulate.”

Mr Comyn said CBA was “interested and exploring” options to provide crypto services, but was “very cautious” about what it would offer and when.