Social media giant, Facebook is far from overcoming the opposition and difficulties posed by the announcements of its global cryptocurrency project, Libra. And now, the UK financial regulators seem to be the next stumbling block!
The United Kingdom Treasury in collaboration with the Bank of England and other major UK’s financial regulators are using synergistic opinions to scrutinize Facebook’s newly revealed cryptocurrency project, Libra.
The CEO of the United Kingdom’s Financial Conduct Authority (FCA), Andrew Bailey, said on Tuesday,
“we are engaged with the Treasury and the Bank of England on it, …we are working together on it.”
The popular social media platform, last week made public the proposed launching of their global crypto project. Libra, as the project is often referred to, is the new worldwide cryptocurrency which is supported by over 25 top companies in the technology industry. The project, as planned will be launched next year as it seeks to help an estimated 1.7 billion people around the world who have no access to banking services. The project aims to provide this set of people and many others with financial services.
From The Beginning Till Now
Since the official announcement of Facebook’s Libra project, there has been a series of scrutiny, attacks, and regulatory oppositions. Crypto enthusiasts and many analysts have taken to social media to disagree with the idea while others believe that Facebook might, in fact, be world class indispensable project which might have been the instigator of the current bitcoin rally.
Recently, Facebook was instructed to stop its activities on Libra on “several occasions” by the regulatory authorities in the US until regulatory procedures are completed and approval given. China and India seem not to roll out a red carpet for Facebook’s idea of Libra as both regions maintain strict cryptocurrency laws and regulations. As a matter of fact, the 10-year imprisonment punishment for crypto dealings in India is still very much alive and intense!
Libra Might Disrupt Financial Policies
Now, financial regulators in the UK have expressed their fear that Facebook’s Libra might accomplish a hidden agenda. That is, to hand too much power over to private organizations, thereby disrupting financial policies, also prompting money laundering. According to Bailey;
Bailey revealed that the Financial Conduct Authority (FCA) has “already engaged with Facebook and there will be more engagements.”
He added by saying that the authority is waiting patiently to see how Facebook and the Libra Association would divide responsibilities for the project. The Libra association is the new nonprofit association based in Geneva, set up to control the project’s cryptocurrency and its blockchain.