The Facebook-led Libra cryptocurrency project is seeking a payment system licence under Swiss financial watchdog FINMA, it said on Wednesday, spelling out in more detail how it hopes to be regulated.
“Switzerland offers a pathway for responsible financial services innovation harmonised with global financial norms and strong oversight,” the Libra Association said in a statement. “We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system.”
A senior U.S. Treasury official visiting Switzerland said on Tuesday the Libra project must meet the highest standards for combating money laundering and terrorism financing if it is to get off the ground.
The Swiss Financial Market Supervisory Authority FINMA today publishes a supplement to its ICO guidelines outlining how it treats so-called ‘stable coins’ under Swiss supervisory law. FINMA has seen a steady increase in the number of ‘stable coin’ projects since 2018. In this context, FINMA confirms that it has received a request from the Geneva-based Libra Association for an assessment of its Libra project under Swiss supervisory law. FINMA gives here an initial indication of how it would apply the relevant Swiss regulation.
For more details follow the link: FINMA publishes ‘stable coin’ guidelines
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”