Financial regulators have Facebook in sights
Facebook's fledgling cryptocurrency faced mounting scrutiny yesterday as European central bankers and regulators demanded more detail on the social media giant's Libra project.
Britain's top financial regulator said there was not yet enough information to understand Libra, adding that it could be very significant for public policy and would not easily get the go-ahead without further disclosure.
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"They are not going to walk through authorisation without that," Andrew Bailey, chief executive of the Financial Conduct Authority, told a British parliamentary committee.
Facebook last week announced plans to launch Libra and the Calibra digital wallet within the first half of 2020, as part of an effort to expand beyond social media to e-commerce and digital payments.
Cryptocurrencies remain one of the least-regulated areas of finance, and the response of regulators to Libra will have a crucial impact on its prospects.
S&P Global Ratings said regulatory hurdles were the main barrier to its success.