Tag: Crypto Trading

Categories
Australia Banking Crypto News

Commonwealth Bank of Australia Halts Crypto Trading Pilot Amid Market Turmoil

The Commonwealth Bank of Australia (CBA) announced this week that it will be halting its rollout of the upcoming in-app crypto trading facility, due to the current market turmoil.

For those who were trialling the pilot, trading has been put on hold with no mention of when it might be set to restart.

Australia's Commonwealth Bank Accused of Massive Money-Laundering ... https://www.nbcnews.com/news/world/australia-s-commonwealth-bank-accused-massive-money-laundering-breaches-n789181
CBA pauses in-app crypto trading trial.

CBA’s chief executive, Matt Comyn, has described the crypto market as “a very volatile sector that remains an enormous amount of interest [for CBA]”. However, the company’s focus seems to be on ensuring customer wellbeing and aligning itself with the proper regulations.

https://www.commbank.com.au/guidance/newsroom/matt-comyn-cba-ceo-201801.html

We want to continue to play a leading role in providing input into that and shaping the most appropriate regulatory outcome … Our intention at this stage is to restart the pilot, but there are still a couple of things that we want to work through on a regulatory front to make sure that that is most appropriate.

Matt Comyn, chief executive, Commonwealth Bank of Australia

Australia’s Federal Treasury is currently meeting to discuss these matters, with submissions remaining open until May 27. The result of this weekend’s election will also hold sway over how this regulation might look.

Earlier last month, CBA was experiencing delays with its upcoming crypto app due to regulatory speed bumps. This came as the Australian Securities and Investments Commission worked to ensure that CBA’s offering would comply with design and distribution rules. Plans for the app were announced in November last year, and CBA has met multiple challenges in bringing it to fruition.

CommBank’s Scam Alert

Just a month ago, the Commonwealth Bank issued a scam alert on the discovery of a false crypto platform partnership report. The fake article had been doing the rounds on social media platforms, misrepresenting the CBA brand and trying to entice Aussies to engage with the scammer’s website. CBA was a logical target for the scammers considering the bank’s prior engagement with the crypto industry.

Categories
Bitcoin Bitcoin Mining Crypto Exchange Crypto News Cryptocurrencies

Bitcoin Supply Rises After ‘Unprecedented’ Year-Long Decline

Bitcoin coins
Bitcoin coins https://unsplash.com/photos/4KJJezDyo3M

The supply of Bitcoin available on exchanges has risen after a long slide that started more than one year ago.

Data from the blockchain analysis firm Glassnode shows that the balance of Bitcoins on exchanges has experienced a recovery to hit 2,461,801.581 BTC – the highest level in a month.

This rise comes after a supply decline that started in March 2020, when the total balance on exchanges soared to more than 3,000,000.

Over-The-Counter BTC supply decline

In a recent weekly report, Glassnode also found that the Bitcoin supply at Over-The-Counter (OTC) exchanges has declined to just 6,000. OTC desks allow investors to buy crypto without making orders on the public exchange and causing price disruptions.

The total balance held by the three OTC desks we track has continued to decline throughout 2021, reaching local lows of only 6k BTC this week. This suggests demand by larger buyers exceeds available supply at these OTC desks. Furthermore, this trend clearly commenced starting in Dec 2020 at which time miners were distributing heavily. This aligns with the strong growth in institutional interest in the asset as a macro scale investment.

Glassnode

In other words, Glassnode analysis suggests that institutional adoption of Bitcoin has increased, as confirmed by multiple banks and big companies getting involved in the crypto space.

What Does The Drop In Bitcoin Balance On Exchanges Mean?

It is hard to say exactly why the supply on all exchanges has been dropping. Investors may be holding onto their Bitcoins, which could mean that another bull run is on the way.

As previously discussed, it is also important to remember that the Bitcoin protocol include halvings, which by definition reduce the issuance of new coins.

All of the above factors could be linked to the price of Bitcoin (BTC) increasing over the same period to reach a price of around $65,000 AUD.

Post by Guest Author – Jasper Hamill

Categories
Australia

Gallantree Partners Aussie Exchange to Offer Crypto Trading

Gallantree Partners Aussie Exchange to Offer Crypto Trading

A fintech company in Australia, Gallantree, is looking to include cryptocurrency trading in its suite of financial services, according to a report on Friday. Based in Brisbane, the fintech has reportedly partnered with Aussie digital currency exchange, Elbaite, to allow residents in the country to purchase and sell many cryptocurrencies. This is quite a milestone as it further broadens access to cryptocurrency in the Australian market.

Gallantree is Preparing to Debut Crypto Services

Gallantree already provides investors in the country with investment opportunities in private banking, stockbroking, etc. By adding cryptocurrency to the list, the company intends to expand investment opportunities to the public, not just the “one percent” financial elite. Having inked a partnership deal with Elbaite exchange, Gallantree will provide the option to buy, sell, and hold digital currencies in a very secure manner. 

Both companies understood the need for adequate security of the assets, and pledged to provide a risk-mitigated venue for clients to trade cryptocurrencies securely, yet at a low cost. While highlighting the need for asset security, the CEO of Elbaite said many investors are aware of the benefits associated with holding digital currencies, especially Bitcoin (BTC). However, it’s a wearisome thing to do because of the poorly managed risks.

Crypto Risks are Keeping Investors Away

One of the challenges with holding cryptocurrency is the fact that it can be hacked from exchanges with a lax security system. Last year, hackers stole more than US$4 billion worth of digital currencies from trading platforms. Kraken and KuCoin are two other major exchange that has been hacked. With adequate security, however, many exchanges are free from hacks. 

“The challenge for any astute investor entering into the digital asset world is often in the form of security. They see the upside, yet no fund manager would risk their reputation and investor capital on an investment that has a high chance of being hacked and the funds disappearing,” said Clive Kay, the managing director at Gallantree.