Facebook Libra project scrutinised by Swiss regulator - Mobile World Live

Facebook Libra project scrutinised by Swiss regulator

11 SEP 2019

The association overseeing Facebook’s Libra cryptocurrency asked authorities in Switzerland to assess the type of clearances and licences it would require, as officials elsewhere continue to raise concerns about the project.

Details of the controversial currency, which is run by non-profit organisation The Libra Association and forms a central part of Facebook’s mobile wallet plan, was provided to the Swiss Financial Market Supervisory Authority ahead of any formal financial services application.

In its initial verdict, the regulator said the project would likely fall under financial market infrastructure rules and require a licence from the authority.

It added there were other potential issues outside its remit that could apply to the Libra project, for example tax, competition and data protection laws.

The regulator’s statement comes as Sigal Mandelker, an official with the US Department of the Treasury, told Reuters Facebook and others would have to ensure currencies adhere to the strictest money laundering rules from the start.

Mandelker’s warning is one of many issued by regulators in a number of markets which have raised concerns about the Libra project.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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