LONDON/ZUG, Switzerland (Reuters) – Facebook’s young cryptocurrency faced mounting scrutiny on Tuesday by European central banks and regulators are demanding more details about the social media giant’s Scale of the project.
FILE PHOTO: a Small toy figures in the painting are to be seen in the representations of the virtual currency in the front end of the Scale, the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic/Image/File Photo
Britain’s top financial regulator, said there was not enough information for you to understand the Scales that the project is very important for law and order, and that it is not easy to go on, with no further explanation.
“They’re not just going to walk by means of the authorization, without any of that,” Andrew Bailey, chief executive of the Financial Conduct Authority, told a British parliamentary committee.
Facebook last week announced plans for the launch of the Libra, during the first half of the 2020s, is part of an effort to expand beyond social media, e-commerce and digital payments.
Cryptocurrencies such as bitcoin will always be one of the least-regulated areas of finance, and the response of the domestic and international financial regulators, and monetary authorities in the balance, the project will have a crucial impact on the prognosis.
Facebook’s project has raised privacy concerns among U.S. lawmakers and prompted European central bankers to require supervision in order to ensure that it does not pose a risk to the financial system, or it can be used for money laundering purposes.
So far, global central banks have largely refrained from regulating the digital currency as well as conclude from the previous year, they were too small to pose a risk to the financial system.
The FCA’s Bailey said the watchdog had been in contact with Facebook, and that’s a lot more work that could be expected, while Domenico Gammaldi, the Bank of Italy, the head of the market and the oversight of payment systems, will also be called for further information.
“The white paper), which means “white,” there is no information,” Gammaldi said to the Crypto Valley ” Conference to be held in Lucerne.
IN ACCORDANCE WITH THE RULES OF PLAY
Bank of France Governor, Francois Villeroy de Galhau said that the Scale would have to deal with the money laundering legislation and its backers, it would have been to seek a banking license to provide services, such as deposits.
In france, it is his years of the presidency of the Group of Seven nations (G7) to set up a task force to address these problems on a global scale.
Some of the other central bankers were more optimistic about the project is that Facebook has hired 28 partners, including credit card, PayPal, and Uber in order to take the form of the Geneva-based Scale Association to regulate the cryptocurrency.
“I think it’s an interesting development, and I’m pretty relaxed about it,” Thomas Moser, an alternate member of the Swiss National Bank, the board of directors, he said.
“They have made it clear that they are willing to play by the rules, they will be out of contact with the authorities,” Moser said at the Crypto Valley Summit.
The Bank for International settlements, an umbrella organization for central banks, said on Sunday that a wider political co-ordination was required in order to proceed with the entry into force of the finances of the big tech companies like Facebook.
Reporting by Huw Jones and David Milliken in LONDON, and Brenna Hughes Neghaiwi in ZUG; Writing by Tom Wilson and John Miller; Editing by Edmund Blair/Keith Weir/Alexander Smith