Watchdogs require details on cryptocurrency

On Tuesday Facebook‘s first encryption faced growing scrutiny as European bankers and central regulators sought more detail on the Social Media giant’s book project.

“We still do not have enough information to understand Libra,” Britain’s top financial regulator said, adding that the project could be very important to public policy and could not take the right step without being discovered further.

Andrew Bailey, Chief Executive of the Financial Behavior Authority, told a British parliamentary commission that “They will not walk through authorization without this”.

Facebook last week announced plans to launch Books within the first half of 2020, part of an effort to expand beyond social media in the field of electronic commerce and digital payments.

Encryption of currencies such as bitcoins remains one of the least regulated finance fields and the response of domestic and international financial regulators and monetary authorities to the Libra project will have a decisive impact on its prospects.

The Facebook project raised concerns about privacy among US lawmakers and urged central European bankers to seek oversight to ensure they would not risk the financial system or be used to cleanse the money.

So far, global central bankers have largely refused to adjust digital currencies, ending last year they were too small to pose a risk to the financial system.

FCA’s Bailey said the supervisor had been in touch with Facebook and that many commitments could be expected, while Domenico Gammaldi, the head of the banking market and oversight of the payment system, also called for further information.

“The white paper, which means” white “without any information,” Gammaldi said at the Crypto Valley conference in Zug.

PLAY FROM RULES

French Bank Governor Francois Villeroy de Galhau said Libra should abide by anti-money laundering rules and its supporters would have to apply for a bank license if it would provide services as deposits.

France is using its one-year group presidency of the seven countries (G7) to set up a work force to address such concerns at the international level.

Other central bankers were more bloody about the project for which Facebook has recruited 28 partners including MasterCard PayPal and Uber to form the Geneva-based Libra Association to govern the cryptocurrency.

Thomas Moser, an alternate member of the Swiss National Bank’s board of directors, said, “I think it’s an interesting development and I’m pretty comfortable about it.”

Moser at the Crypto Valley conference said: “They have clearly shown that they are willing to play according to the rules, have contacted the regulators.”

The Bank for International Settlements, a umbrella group for central banks, said on Sunday that greater political coordination is needed to address the entry into finance of major technology firms such as Facebook./Investing.com

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