While European watchdogs send troubling signals to the Facebook-led Libra cryptocurrency, Switzerland remains willing to listen.
October 2, 2019, | AtoZ Markets – Facebook’s plans for its upcoming Libra cryptocurrency are already fronting regulatory scrutiny as central banks. And politicians all over the world have called for administration of the social network crypto project.
The Swiss Financial Market Supervisory Authority contacts with the “promoters” of the Facebook crypto project and must establish whether planned and services are required to be authorized in accordance with Swiss supervisory law. Mark Branson, head of the Swiss financial supervisor FINMA, said he is more interested in the dark corners of the cryptocurrency than in Facebook’s StableCoin Libra.
Facebook officially unveiled its cryptocurrency plans earlier this week, with the goal of serving non-bankers and facilitating low-cost money transfers globally. The Libra cryptocurrency should become operational next year.
Switzerland will not make Libra impossible
On October 1, Reuters reported that Bronson is more wary of crypto projects that develop outside official control than in the Libra project on Facebook, which says it is done transparently. He also said that he is more nervous about projects that develop in a dark corner of the financial system. Somewhere It may spread in cyberspace and one day they will be too great to be stopped.
Branson explained that the Libra will have to face the same strict rules that apply to banks in addition to the already established strict anti-money laundering laws, but that Switzerland will not make its way to block the project, he added “We are not here to make such projects impossible. We will respond with an open mind, with an attitude that the same risks require the same rules. Our rules and our standards are not negotiable”.
Switzerland ready to approve Libra
As per few sources, while some of the European regulators are ready to block private “parallel currencies”, Branson stated at the beginning of September 2019 that the project fits perfectly within their existing regulatory framework.
They have just published a guide on how to classify StableCoins according to Swiss law. And they prove that it does not need any new laws. The risks are noted concerning customer protection, money laundering, the stability of the system. For all these risks there are already rules “.
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