Libra will be regulated by Swiss financial authorities, expects Facebook

Facebook will not launch Libra's cryptocurrency until it "completely eliminates all regulators' doubts". This is what The Verge writes with reference to the theses prepared by the head of the project David Markus for tomorrow's hearing in the U.S. Congress.

Markus expects the Swiss authorities to regulate the cryptocurrency, as the Libra Association is registered in their jurisdiction. The organisation is in "preliminary negotiations" with the local regulator and will comply with Swiss data privacy laws, according to the publication.

The organization does not yet have a charter - Facebook expects its members to participate in the development of the document in the future. Without a charter, all discussions are preliminary in nature, as it is not possible to regulate an instrument that does not have its own rules.

Markus also promises that the U.S. authorities will be involved in the regulation of Libra-related services, including the Calibra wallet. According to his plan, the Calibra division must be registered as a remittance service provider, and the Federal Trade Commission will be responsible for consumer protection. Libra and related services will be registered with the Financial Crimes Enforcement Network to ensure compliance with sanctions requirements and will follow national anti-terrorist financing laws.

Previously, it was suggested that the launch of Libra might require the approval of the US Securities and Exchange Commission (SEC) if it saw in the cryptocurrency signs of a traded fund (ETF). Markus, however, does not cover this issue and presents Libra as a form of payment instrument, not as an investment instrument.