Swiss regulators say Libra needs to get a license

by in Cryptocurrency News

Swiss regulators say Libra needs to get a license

Switzerland officials stated that for launching its cryptocurrency Facebook is going to be demanded official permission with a granting license contingent on the perils of reserve management being carried wholly by the association and not by coin holders.

Related: Regulators: Blockchain increases money laundering risks

Finma, the Swiss economic governor, mentioned that the Libra project is going to necessitate a license for payment system and would become a point to extra regulation to take “bank-like” risks into account. Libra will also be required to implement the highest standards of international anti-money laundering.

Finma said that the right status for being conferred a license as a payment system is going to be that the risks and returns connected with the management of the resources are carried totally by the Libra Association and not by the stable-coin holders.

The Libra Association is a not-for-profit organisation which is going to control the payment system and govern the digital currency, is decided to be located in Geneva, Switzerland. Libra is defined as a blockchain-based digital coin which is going to allow Facebook users to transfer and receive money or pay for different services. It’s supposed that Libra is going to launch during next year. The project received a great wave of pushback and was warned that even if it decides to be based in Geneva it’ll still have to comply with US anti-money laundering standards.