US Regulator in Talks With Facebook Over Rumored Crypto Plans

Meeting O. Progress || JUNE 3, 2019

The U.S Regulator, Commodity Futures Trading Commission (CFTC) is reported in talks with Facebook about its upcoming stablecoin launch.

According to Financial Times on Sunday, the CFTC chairman Christopher Giancarlo said that the agency held “very early stages of conversations” with Facebook. The goal was to better understand if the firm’s crypto stablecoin could potentially fall under the CFTC’s regulatory remit.

“We’re very interested in understanding it better,” this was the statement Giancarlo according to the report. “We can only act on an application, we don’t have anything in front of us.”

The Facebook’s Project Libra in charge of this rumored stable coin is reportedly plan to allow Facebook’s users to transfer money across borders and to make online purchases.

Giancarlo added it’s now too soon to say whether Facebook’s GlobalCoin could fall under CFTC’s remit but said if the cryptocurrency could be backed by the U.S. dollar, then there might be less of a need for derivatives tied to it.

“That’s very clever,” Giancarlo said of this design. However, the report added that one top compliance issue by regulators is whether and how Facebook will adhere to and implement the anti-money laundering and know-your-customer measures.

Previously report that Facebook was in talks with some major crypto exchanges in the United State including the UK as it plans its crypto testing.

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