Libra: Australian authorities call for further information

World's politicians are skeptical of Libra. Too little was about the currency plans of Facebook known the true intentions of the platform giants remained Hidden. Now Australian regulators have their displeasure made known. While you demand even more information, stresses the Federal Bank Board of Directors in this country, the need for a global Regulation.

By Anton Livshits
On 7. November 2019BTC $ 9,224.13 -1.00%part Facebook Twitter LinkedIn xing mail

Only last week, representatives of the economy have the strongest EU member States to advise on a possible Libra-ban. Now, the concerns with Facebook's planned crypto-currency are also in the Down Under louder. The Australian regulators plagues here, similar Concerns as their European counterparts. You know too little about Libra, the risks were, therefore, not calculate.

Specifically, Reuters reported with reference to the newspaper The Australian that eight different regulatory authorities want to use their Power to force Facebook to more Details about his currency plans to disclose. According to the report from the 5. November came, the authorities in this regard to an Agreement. This decision was in October, an unsatisfactory Meeting with Facebook representatives preceded. At the Initiative of the Office of the Australian Information Commissioner, which is responsible for data protection is involved, in addition to various Australian financial regulators.

Australian authorities stress the need for a Libra-Regulation

A special Committee of the Australian financial Supervisory Securities and Investment Commission (ASIC) said, however, already in July, a clear warning. If Libra could not effectively regulate, there were, therefore, considerable risks for investors and consumers. The ASIC also warns against the fraud potential of the Libra-Ecosystem. The authority expected the existence of additional risks and dangers that only show up as soon as more information becomes available.

As reported by Reuters, gave Facebook a list of questions from The Australian unanswered. Instead, a spokesman for the Zuckerberg group announced the following statement:

As a member of the Libra Association, we will continue to participate in a dialogue that ensures that this global financial is governed infrastructure in a way that corresponds to the people it serves.

Federal Bank Board of Directors expressed concern to Facebook's currency plans [display] Bitcoin, Ethereum, Ripple, IOTA, and the most well-known crypto-currencies on the Plus500 trading. Why Plus500? Free Demo account Mobile Trading App; payments by PayPal; a wide selection of various financial products (crypto-currencies, stocks, commodities, ETFs, Forex, indexes).

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Meanwhile, Joachim Wuermeling, a Board member of the Bundesbank reiterated that the skeptical attitude towards Libra. In an Interview with the süddeutsche Zeitung, he made a number of Reserved claims. The main problem he sees is that Libra offers a similar range of services, such as a Bank, to be without such a regulated. Consequently, is not possible, that users get back their deposited funds. In addition, he refers to the possibilities for money laundering and terrorist financing. Similar to the Australians, the Federal Bank, the Board of Directors of Facebook, therefore, requires more information.

at the same time, the enormous reach of the Social Media platform, however, involves potential hazards. Given the huge numbers of users of Facebook also Libra could attract millions of users. Since Libra is secured as a Stable Coin by a basket of Fiat currencies, this would have the consequence that large amounts of funds and government bonds come under the control of the group. That would mean, according to Wuermeling, that Facebook "is the largest creditor of the individual States" is. As a consequence, political dependencies could be set.

The Federal Bank management Board emphasized, ultimately, the need for a global Regulation. Since Libra and similar projects are supranational phenomena, the control efforts of individual countries is too short. Need an international law framework and institutions that guarantee its compliance. In the case of banks, this is already the case today.

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