Regulators are not that excited about Facebook's plans

Although many parties in the cryptocurrency industry reacted positively to Facebook’s recent announcement of the Libra project, many regulators from all over the world do not necessarily share the same enthusiasm.

Regulators and politicians from various countries almost immediately responded to the company’s announcements, many taking into account how Facebook handled its customers’ private information in the past.

Democratic congresswoman – Maxine Waters, commented: “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a crypto-currency until Congress and regulators have the opportunity to examine these issues and take action.”

“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”

German member of the European Parliament – Markus Ferber, commented that the entry of Facebook into crypto is “a good reason for regulators to start working on a proper regulatory framework governing the rules of virtual currencies.” “Multinational corporations with giant user bases such as Facebook must not be allowed to operate in a regulatory nirvana when introducing virtual currencies.”

Furthermore, the French Minister of Finance – Bruno Le Maire and the Italian Prime Minister – Matteo Salvini, both fear that the currency may grow to replace traditional currencies at some point, which is why Le Maire commented that “It can’t and it must not happen.”

Besides politicians, Thomson Reuters legal technologist – Peter Colin, commented: “The potential exists for claims pertaining to consumer fraud and investor protection to increased tokenization of assets, to how to classify and regulate Libra (as well as Facebook and its role), to user privacy and surveillance concerns and to the money laundering concerns consistently present with cryptocurrencies.”

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Source: Regulators and politicians respond to Facebook’s crypto plans - ... Facebook’s cryptocurrency ambitions face privacy concerns, political backlash - ... Facebook urged to pause Libra crypto-currency project - ... Facebook’s New Crypto Faces Scrutiny From European Authorities - ... Facebook’s cryptocurrency is already facing political pushback in Europe -

Curated by 80dB

Author: Kevin Houtop

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