Social media giant Facebook has reportedly applied for BitLicense, a New York state-specific cryptocurrency license, for its Libra project. In addition, Facebook is also in talks with the UK’s Financial Conduct Authority (FCA), the Bank of England, and Switzerland’s financial regulator FINMA regarding its cryptocurrency initiative. This shows that Facebook is willing to go the extra mile to stay compliant across multiple jurisdictions.
As per the report, Facebook’s cryptocurrency has already been under scrutiny from regulators across the globe owing to its size and privacy concerns. It seems like Facebook, which plans to launch the cryptocurrency project by 2020, is trying its best to make sure that its new project gets the green signal from a regulatory perspective.
Facebook Calibra, the subsidiary looking after the Libra project, has applied for money-transfer licenses in the US and registered with the FinCEN as a money services business. However, it does not plan to apply for local banking licenses.
Notably, it has not sought approval from RBI regarding the project. A lot of reports have indicated the Facebook Libra may run into regulatory hurdles in India and may even abort the launch in the country.
(Image Credit: Libra)