Regulations

BoF Governor: Facebook’s Libra coin needs a banking license

Today, Francois Villeroy de Galhau, the governor of Bank of France said that Facebook’s Libra coin would have to comply with anti-money laundering regulations and seek banking licenses if it offers banking services.

As reported by Reuters, although Villeroy admitted that there is room for Facebook’s Libra coin to improve cross-border money transfer, there’s need for the Libra project to comply with the existing banking regulations and comply with AML laws

The governor added that:

“If the project seeks to go beyond payments to offering banking services like deposits, it will then have to be regulated like a bank with a banking license in all the countries it operates. Otherwise, it would be illegal.”

As per the Reuters report, Thomas Moser, member, Swiss National Bank’s governing board, said during the  Crypto Valley Conference in Zug, that he is open-minded about Facebook’s Libra coin project.

 Moser noted:

“Overall I think it’s an interesting development and I’m pretty relaxed about it. […] They have clearly indicated that they are willing to play according to the rules, they have been contacting the regulators.”

The head of marketing and payment system at the Bank of Italy was reportedly interested in learning more about Facebook’s Libra coin project.

Recently, the French Finance and Economy Minister expressed that he intends to seek guarantees from Facebook in regards to Facebook’s Libra coin project. He also requested the G7 central banks’ governor to report what guarantees are to be obtained from Facebook.  A former United States economic adviser expressed his support for Facebook’s Libra coin project.

Britain’s top financial regulator said there isn’t enough information yet to understand Facebook’s Libra coin, adding that it could be significant for policy and wouldn’t easily succeed without further disclosure.

Do you think Facebook’s Libra coin needs a banking license?

You may also interested in:

Facebook’s announcement of Libra: What 3 crypto experts think.

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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