Concerns Around Cryptocurrency Remain For US Regulators After Switzerland Visit

facebook-libra-switzerland

Facebook’s proposed cryptocurrency project, Libra, still a major concern for United States lawmakers after visiting Switzerland to meet Swiss financial regulators.

With the potential of Libra to become a payment method, and the excitement it might be traded using systems similar to Bitcoin Loophole, authorities are taking an even harder stance toward it.

US Regulators Meet With Various Agencies

Representative Maxine Waters’ official statement published on Aug 25, states that there were multiple meetings that the members of the U.S House of Representatives Financial Services Committee attended with various lawmakers and regulatory agencies.

Some of these were the Federal Data Protection, State Secretariat for International Financial Matters, the Financial Market Supervisory Authority and Information Commissioner.

As it was reported earlier in August, the objective of these meetings with the representatives was to understand how multiple Swiss authoritarian bodies plan to regulate Libra and understand more about the condition and reach of the cryptocurrency project.

Although helpful, Waters still had his concerns unsorted, he said: “While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency.”

The co-creator of Libra and the vise president of messaging products at Facebook, David Marcus said in a series of the congressional hearing held in mid-July earlier this year that Switzerland was a preferred regulatory solution for the aims of the crypto project.

Even then, a lot of U.S lawmakers were still not convinced and gave voice to their concerns about Facebook locating to Switzerland to prevent legal actions during regulatory arbitrage.

Launch Of Libra Is Adviced To Be Kept On Hold Until Investigation Around User Data Security Is Over

Waters said in a statement published earlier this week about the progression of investigation on Libra and told that further analysis is a priority for the Financial Services Committee in the upcoming legislative session.

Waters has been openly critical of Libra project given the past behavior of the social media giant related to user privacy issues, stating Facebook has “demonstrated pattern of failing to keep consumer data private on a scale similar to Equifax.”

Waters advised Facebook to halt the work around Libra after they submitted the Whitepaper for the project earlier this year so that the authorities could investigate the project. As a result of which, Facebook can not launch Libra until regulators and Federal Reserve are informed on their concerns.