UK Regulator Says That Facebook Isn't Going to Swan Through Regulatory Checks for Libra

By Shabana Arif on at

Zuckerberg's bid to take over the world is going to see him have to jump through a few hoops first, as the UK watchdog does a lot of posturing to reassure the public that Libra will be subject to regulatory checks.

Facebook's new cryptocurrency has the potential to amass billions of users, and is being overseen by a conglomerate called the Libra Association, made up of 28 multi-million pound companies that have met the requirements to be a part of it - namely having a shit tonne of money and at least 20 million users per year. That number will rise to 100 by next year, when Libra officially launches.

Facebook co-founder, Chris Hughes, has warned that Libra will empower corporations and weaken developing countries" and has urged regulators to to "act now" as "it could very soon be too late."

Andrew Bailey of the Financial Conduct Authority (FCA) has commented that the new cryptocurrency could be "extremely significant," and will raise "very big issues for the public policy world”. The FCA, along with the Bank of England and the Treasury, have been talking to Facebook, and Bailey assures the public that the company won't be able to breeze through regulatory checks.

"We will have to engage domestically and internationally with Facebook and this organisation [the Libra Association] that has been set up,” he said, “because they are not going to walk through authorisation without that at all.”

Despite neglecting to explain what rules and regulations Facebook or the Libra Association will be held to, Bailey added that Facebook has so far been “quite transparent” in his dealings with it.

Mark Carney, Bank of England governor, was keen to stress that he would respond to the cryptocurrency with “an open mind not an open door”.

Here's how the world is responding to Libra and if you're still wondering what it's all about, we've answered the big questions about the impending digital currency. [Telegraph]