Most recently, Australia, too, joined them expressing opposition to it. The Office of the Australian Information Commissioner (OAIC) is engaging in a broader regulatory approach.
Reportedly, the government agency has emailed other regulators in the country to “use their formal powers” to press Facebook on addressing their concerns. Elizabeth Hampton, the deputy commissioner of the agency noted,
“If we don’t get answers to these questions from the U.S.-based team we will then need to consider whether formal powers are exercised where available.”
The financial regulators in the country met with Facebook Australia’s execs to grab details on Libra. They were left unsatisfied.
The U.S. based team of Facebook will be called upon formally by Australian regulators to chalk out their crypto plans with them.
The government is raising concerns that echo with the other developed countries as well — loss of monetary control, along with security and privacy of customers’ financial and personal details. The regulators seem to have further concerns that they plan to introduce once they get the details.
The Australian Securities and Investments Commission (ASIC) which raised concerns about in July as well, noted that there are a plethora of risk associated with it, it said,
“We also expect that we may identify more risks and threats once we have more information,”
International Collaboration for Libra and Stablecoins
The International Organization of Securities Commission (IOSCO) released a statement on ’emerging global stablecoin proposals’ on Monday. The press release noted that stablecoins ‘are typical of regulated securities.’
Moreover, their current uncharted existence raises significant risks for global governments. If they are classified as securities, they will be required to follow the existing international guidelines on them. The organization’s letter also notes,
“We therefore encourage international collaboration, so the risks relating to stablecoins can be identified and mitigated, and the potential benefits realised,”
Notably, the organization’s membership regulates more than 95% of the world’s securities markets in more than 115 jurisdictions, and it continues to expand.
This view not only extends to Facebook’s crypto plans, libra, but also numerous other stablecoins. They include Tether, USDC, MakerDAO, TUSD, and so on. These stablecoins have become an integral part of trading crypto. Hence, the laws could have newfound implications on the markets.
What changes do you expect in the market if stablecoins are regulated as securities? Please share your views with us.