Facebook's initiative to create an accessible, frictionless, globally-available cryptocurrency and payments network is brushing up against unprecedented regulatory hurdles, at least according to a new report from Reuters.
Facebook's path forward will involve careful orchestration with central banks, financial overseers, and enforcement officers around the world.
Calibra, a Facebook subsidiary that will develop a wallet and financial services for the Facebook ecosystem, has registered as a money services business with the U.S. Financial Crimes and Enforcement Network, applied for money-transfer licenses in the United States, and began the process to obtain a BitLicense from New York's Department of Financial Services.
The company has also reportedly spoken with authorities at Britain's Financial Conduct Authority, the Bank of England, and Switzerland's financial regulator, FINMA. Additionally, the Russian Ministry of Finance said Libra will be treated in Russia like any other digital asset, with forthcoming regulations expected.
Despite these steps toward compliance, Facebook "Will not get a free pass anywhere," said Park.
Libra was put forward at a time when Facebook is already facing public and governmental scrutiny for its outsized influence and questionable privacy policies.
While Libra is not exclusively Facebook's project, being overseen by a consortium of corporate and non-governmental investors based in Geneva called the Libra Association, the currency itself faces existential challenges.
"The scrutiny that we've seen is something that we expected and welcome," a Facebook spokesman said.
A Facebook representative told Reuters that these reserves would follow the monetary policies of the source countries.
Given the anti-trust roadblocks Facebook is already facing, as well as the challenges of attempting to disrupt global finance with system's planned launch in 2020, at least one analyst is predicting Facebook hasn't fully considered their position.
Facebook's Inches Towards Global Regulatory Compliance, Applies for New York BitLicense
Publicado en Jul 1, 2019
by Coindesk | Publicado en Coinage
Coinage
Noticias recientes
Ver todo
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.