Facebook’s relationship with financial institutions could be threatened if it launches its cryptocurrency Libra without fully addressing concerns over money laundering, The Financial Times (FT) reported on Tuesday, October 22.
ING CEO Ralph Hamers told FT that banks are the “gatekeeper to the financial system” and they can’t bankroll companies that are suspected of “opening up [the system] for financial . . . crime.”
“Then we can take measures and exit the client, or not accept the client, so those are discussions you would have to have,” Hamers told the news outlet. He further confirmed that Libra could jeopardize Facebook’s future funding.
“From the beginning, we’ve said we’re committed to taking the time to get this right … As a member of the Libra Association, we will continue to be a part of this dialogue to ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves. Facebook will not offer Libra through its Calibra wallet until the Association has fully addressed regulators’ concerns and received appropriate approvals,” a Facebook spokesperson told FT.
Regulators are concerned that the Switzerland-based Libra could be used for money laundering — and until those fears are addressed, banks will avoid the project.
Mark Zuckerberg, Facebook’s CEO and founder, is expected to address money laundering and other Libra concerns when he testifies before the Financial Services Committee on Wednesday, October 23.
Earlier this month, the Bank of England’s (BoE) Financial Policy Committee (FPC) handed down a set of strict rules that Facebook’s Libra and other cryptocurrencies must follow in order to do business in Britain.
The “rules of engagement,” as the BoE calls them, show that financial institutions are taking digital currencies like Libra seriously. The FPC will exercise current authoritative “tools” instead of adopting new rules.
Crypto wallets will be considered bank accounts and will be subjected to rules like deposit insurance and cash flow.
Full Content: PYMNTS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Walmart Withdraws and Refiles Antitrust Review Application for Vizio Acquisition
Mar 28, 2024 by
CPI
Apple Prevails in Dismissal of Crypto-Payment Antitrust Lawsuit
Mar 27, 2024 by
CPI
Amazon Fined in Poland for Misleading Customers
Mar 27, 2024 by
CPI
Credit Card Rewards Under Threat as Visa, Mastercard Settlement Impacts Swipe Fees
Mar 27, 2024 by
CPI
UK Fashion Giants Commit to Honest Environmental Claims
Mar 27, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI