Copy link
Increase text size
Decrease text size
Link copied

Facebook's crypto project Libra would need Swiss payment system license: FINMA

Image by Christoph Scholz (Flickr)

Wed, 11 Sep 2019, 09:05 am UTC

The Swiss Financial Market Supervisory Authority (FINMA) has revealed that the Libra Association, the governing body of Facebook’s cryptocurrency project ‘Libra,’ is seeking an assessment of the crypto project under Swiss supervisory law.

FINMA made the announcement while unveiling new ‘stable coin’ guidelines. In its official announcement, the regulator said:

“The Libra Association asked FINMA for an assessment of how the supervisory authority would classify the planned Libra project including the issuance of a ‘stable coin’ under Swiss supervisory law. FINMA confirms receipt of this request.”

The regulator clarified that its treatment of ‘stable coins’ under supervisory law follows the existing approach taken to blockchain-based tokens.

“The requirements under supervisory law may differ depending on which assets (e.g. currencies, commodities, real estate or securities) the ‘stable coin’ is backed by and the legal rights of its holders…Money laundering, securities trading, banking, fund management and financial infrastructure regulation can all be of relevance,” it added.

Speaking of the Libra project, in particular, FINMA emphasized that the project should ensure compliance with “highest international anti-money laundering (AML) standards” throughout its entire ecosystem. It said that the project, in its current form, would require a payment system license on the basis of the Financial Market Infrastructure Act (FMIA).

“Under the FMIA, all additional services that increase the risks of a payment system must be subject to corresponding additional requirements…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 and therefore be subject to such additional requirements,” it said, adding that the additional requirements would relate to “capital allocation (for credit, market and operational risks), risk concentration and liquidity and the management of the Libra reserve.”

The Libra Association said that it is engaging in constructive dialogue with FINMA, adding that it sees a “feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system,” Reuters reported.

Meanwhile, Facebook has revealed the initial basket of currencies that will back Libra, which includes the U.S. dollar (USD), euro (EUR), Yen (JPY), British pound (GBP), and Singapore dollar (SGD). The firm announced the list of potential in response to the concerns from U.S. Senator Mark Warner, a Virginia Democrat who sits on Senate Banking Committee, regarding the inclusion of yuan (CNY) in the basket.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $33,211.00 (+2.80%)
  • Ethereum (eth) $2,092.14 (+3.90%)
  • Tether (usdt) $1.00 (+0.11%)
  • Binance Coin (bnb) $294.45 (+0.90%)
  • Cardano (ada) $1.20 (+1.33%)
  • Bitcoin (btc) $33,211.00 (+2.80%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft