Facebook has started a discussion with the U.S. Commodity and Futures Trading Commission over the social media giant's crypto stablecoin initiative.
According to a report from the Financial Times on Sunday, the CFTC chairman Christopher Giancarlo said 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," Giancarlo was quoted as saying in the report.
"We can only act on an application, we don't have anything in front of us."
The news comes amid recent reports that Facebook also held talks with government officials in both the U.S. and the U.K. to discuss opportunities and regulatory issues for its crypto stablecoin called GlobalCoin.
The cryptocurrency, under Facebook's Project Libra, is reportedly aimed to allow Facebook's global 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.
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.
Facebook Holds Talks With CFTC Over GlobalCoin Cryptocurrency: Report
gepubliceerd op Jun 3, 2019
by Coindesk | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.