Odaily Frontline｜Australia may force Facebook to disclose details of Libra plan
This article comes fromReutersReuters
Odaily Translator |
, original author: Sonali Paul
Odaily Translator |
Australia's financial watchdog may force Facebook to disclose details of its plans for the Libra global cryptocurrency after the company failed to assuage regulators' concerns, according to Australian media reports.
After an unsatisfactory meeting with Facebook in October, eight Australian regulators have agreed to use formal powers to pressure the company on Facebook's plans to launch a stablecoin, the media said.
A stablecoin is a digital currency pegged to a "stable" asset or basket of assets, ranging from real money to commodities. Libra will be pegged to bank deposits and government securities in several currencies, such as the U.S. dollar and the euro.
Australian and international regulators have expressed concern that the new currency could disrupt the financial system, harm Facebook app users and aid money laundering.
Australian media quoted Elizabeth Hampton, the deputy commissioner of the Office of the Australian Information Commissioner (OAIC), as writing to other regulators in an email saying: "If we do not get answers to these questions from the US team, then we will need to consider whether, where possible, exercise formal powers."
The OAIC is Australia's national agency overseeing privacy and freedom of information.
According to the report, an expert committee of the Australian Securities and Investments Commission (ASIC) studying emerging threats warned members in July that if Libra is not effectively supervised, "all regulated entities" as well as consumers and investors may be affected.
"The proposed Libra ecosystem also presents a number of risks and threats, including a proliferation of Libra-based scams via mobile applications," the ASIC committee said, according to documents obtained by Australian media.
"We also anticipate that we may identify additional risks and threats as more information becomes available."
Facebook Australia declined to answer a series of detailed questions about its meeting with Australian regulators, the report said.
A Facebook spokesperson told the publication, "As a member of the Libra Association, we will continue to be part of the conversation to ensure this global financial infrastructure is managed in a way that reflects the people it serves."
