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Swiss Finma to Facebook's Libra: International action is indispensable

The Swiss financial market Supervisory authority Finma has published guidelines to stablecoins. The publication will be preceded by a license request from the L

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Swiss Finma to Facebook's Libra: International action is indispensable

The Swiss financial market Supervisory authority Finma has published guidelines to stablecoins. The publication will be preceded by a license request from the Libra Association advance.

By Phillip Horch
11. September 2019BTC$10.009,41 -2.03%part Facebook Twitter LinkedIn xing mail

Bitcoin and most crypto-currencies to their volatility, known – rate fluctuations of several per cent on the same day are not uncommon. Stablecoins to promise a safe Alternative. You provide a counter-weight to the sometimes highly volatile prices of Bitcoin & co. is, by (theoretically) covered by a fixed value. to give

these Coins a regulatory framework, published by the Swiss Finma will now guidelines. The regulatory authority is responding directly to a request from Facebook as to the planned crypto-currency project Libra. Basically, the guidelines that already apply to ICOs apply according to the Finma, especially in relation to the prevention of money laundering.

Finma, the need for a possible admission of the Facebook Coins Libra

First of all, it is said in the message, need Facebook Libra admission and to be classified as a payment system:

The project, as now planned, would be a FINMA authorisation as a payment system on the Basis of the financial market infrastructure act (Fmia).

Furthermore, the financial market authority of Switzerland, should the international Standards, in particular, the "Principals for Financial Market Infrastructures" to follow. Any Ecosystem of the Libra project must be able to ensure also, to be against money laundering risks immune. There are also additional requirements do not apply to Facebook's Libra, as they offer a payment system, but also your own Token issue:

would a token Because of the issue of its own Payment of the scheduled services of the Libra project is a pure payment system in a clear and, therefore, such additional requirements are subject to.

here, Too, however, it is not according to the communication necessary to re-invent the wheel. Rather, the Swiss stock exchange oversight recommends that the applicable law to be applied:

The additional requirements would be based on recognized Standards for comparable activities in the financial market, and should the Dimension of the project correspond to. So, for example, Bank-like risks should also be subject to Bank-like regulatory requirements. An authorisation as a payment system would thus allow for the combination of the relevant requirements of the financial market infrastructure and banking to the right.

Finally, the fundamental condition for any approval, must be the Libra Association, is solely responsible for the project:

a basic requirement for a licence as a payment system would be that the with the administration of the Reserve related income and risks would be fully borne by the Libra Association, and not – as, for example, in the case of a Fund provider in the case of the eventual owners of the "Stable – Coin".

International cooperation is essential

in the end, need to work together international Reg(ul)conciliation authorities, in order to keep the Bitcoin descendant from the house of Facebook makes sense in chess:

The planned international reach of the project, internationally coordinated approach is essential. In particular, the Definition of the requirements for the management of the Reserve, to the Corporate Governance in the administration, as well as to the combating of money laundering would be international to prepare.

Up to a possible authorisation are, however, climb some more bureaucratic hurdles. A licence procedure, Finma would only start when a concrete permit application should arrive. The Finma "would inform practice in accordance with neither the state of any ongoing proceedings, even at the time of a possible procedure statements Express".

Financial Action Task Force observed Libra

Also, the Financial Action Task Force (FATF) based in Paris, the project, however, in the eye. Xiangmin Liu, the new Chairman of the FATF, expressed to Reuters that at an Event in London on the topic of Libra: "We want to make sure that significant risks are present, be addressed." He is disturbed mainly due to the anonymity of Bitcoin & co., "will be exploited by serious Criminals".


Paxos supplies covered by Gold Stable Coin Swiss Central Bank chief: So Libra is endangering the monetary policy, "antitrust-like": ECB Executive Board member Mersch warns of Facebook's Libra#Finma#Libra#Stable Coin
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