Facebook Libra is seeking to apply for “licensing as a payment system in Switzerland”. It is seeking to apply under Switzerland’s Financial Market Security Authority (FINMA) as reported by Reuters on September 11th.
FINMA released guidance on the “regulatory requirements” for payment systems on blockchains.
FINMA guidance is under accordance with digital asset regulation which was released this June. It was issued by the inter-governmental Financial Task Force (FTF).
“We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system. This is an important step in Libra project’s evolution, and we look forward to continuing our engagement with all stakeholders over the coming months.”Dante Disparte, the Libra Association’s head of policy and communications, said of the choice to coordinate with Swiss regulators:
However, FINMA refuses FTS delivery of “refusing to exempt payments that involve unregulated wallet providers from its oversight.”
“Due to the issuance of Libra payment tokens, the services planned by the Libra project would clearly go beyond those of a pure payment system, FINMA said, noting this mean it would be subject to such additional requirements.” FINMA
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Facebook’s concern for regulators
Facebook Libra is making waves across the news over regulators concern of Libra disrupting the global monetary system sue to Facebook’s mass userbase accessibility to cryptocurrency.
US Treasury Sigal Marker said yesterday that “Facebook’s Libra must meet the highest standards of regulatory compliance prior to any launch.”
“Under the FMIA, all additional services that increase the risks of a payment system must be subject to corresponding additional requirements. This means that all the potential risks of a Swiss payment system, including bank-like risks, can be addressed by imposing appropriate requirements in line with the maxim ‘same risks, same rules.” Sigal Marker
FINMA too raised concern on Facebook’s linkage with Switzerland’s secured payment system might be subjected to “Anti-Money Laundering Act”.
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