Facebook has the Scale, it could come in under the current rules: watchdog

LONDON (Reuters) – with the Existing securities rules applicable to “stablecoin” digital currency initiatives, such as the Facebook, the Libra project is to help you realize the benefits of the global securities watchdog IOSCO said on Monday, as policy makers, to examine whether there are any new regulations are needed.

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/File Photo/File Photo

The guardian, which is comprised of regulators from around the world, including the United States, Europe, and Japan, it said in a review of stablecoins and found them to be able to offer you both the benefits and the risks.

A stablecoin is a digital currency pegged to a “stable” asset or basket of assets, which may differ from real currency is on the raw material. Scales should be linked to long-term bank deposits and government securities, on various currencies such as the dollar and the euro.

However, Facebook plans to begin Scale up their concerns, including the protection of the consumer, for the purpose of money laundering, and even the idea of the traditional monetary system may be disrupted.

“Our analysis has shown that the so-called “stablecoins” may have features that are characteristic of regulatory effects,” IOSCO chair Ashley Alder said in a statement.

This means that the existing securities rules relating to disclosure, record-keeping and reporting may be appropriate.

Facebook CEO Mark Zuckerberg said the U.S. lawmakers last month that the monitor was a very risky project, but it was able to reduce the cost of electronic payments on the global financial system, and for the people.

The tone of the IOSCO statement was more nuanced than some of the comments made by the decision-makers in the European countries, such as France and Germany, which, like Libra, is blocked. Facebook balance is due to launch in 2020.

“It’s important for those of you who are in the launch of stablecoins, in particular, to the proposals which have potential for global scale and engage openly and constructively with all relevant regulatory authorities, where they wish to work on,” Els said.

There is also a need for a better understanding of the rights and obligations of any of the stablecoin gives to the participants, and the ongoing obligations of the state.

“We are, therefore, encouraging international cooperation, to ensure that the risks relating to the stablecoins could be identified and mitigated, and the potential benefits to be realized,” said Els, who is also the head of Hong Kong’s securities regulator.

IOSCO said that it would be helpful to the global Financial Stability Board’s work on stablecoins to the G-20 (Group of 20 Economies.

The FSB, which is chaired by Randal Quarles, the Fed’s vice-chairman for supervision, it is checked whether there are legal “gaps” and the global stablecoins.

Reporting by Huw Jones; Editing by Jon Boyle and Alison Williams

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