The Libra association which is a non-profit organization, headquartered in Geneva, is accountable for taking care of the proposed cryptocurrency on Facebook Libra. It has placed a request for a license to FINMA. It has pursued FINMA with an intention regulate under it and this would be a new payment system on Facebook. Libra is not first non-profit organization that wants to get itself supervised by FINMA but there are many others as well as FINMA is unbiased and operated with neutral technology for many such digital assets and banks that are functioning under it. A license from FINMA would strengthen Libra’s operations as digital assets on Facebook and this will again help to gain the faith of consumers and the traders since Libra carries charges of money laundering.
FINMA is the Swiss market supervisory authority. FINMA is a government body which regulates finance in the domain of bitcoin and crypto-currency. FINMA supervises banks, insurance companies, security dealers. It is an independent institution functioning independently.
FINMA has confirmed that Libra has sent a request for owning a license, wanting it to be regulated under swiss rules. Libra association is under the impression that FINMA is actually the nucleus of many such international organizations for its advanced technology, financial services and venture capital under its umbrella. Libra Association has stated in a press release, “The choice of Switzerland as the home for the newly established Libra Association, which when fully developed will have a diverse group of member organizations spanning technology, financial services, social impact organizations, and venture capital, among others, harnesses Switzerland’s role as a nucleus for international organizations.”
The approval for granting a license to Libra, the crypto-currency on facebook is still on hold as Libra is run the risks of money laundering and frauds. FINMA states, “Due to the issuance of Libra payment tokens, the services planned by the Libra project would clearly go beyond those of a pure payment system and therefore be subject to such additional requirements.”
This drives us to the conclusion that Libra association has taken a wise step by approaching FINMA. The payment system on Libra will expectedly be smooth that is would be divested of friction under proper regulations, and security of digital assets would be tightened under proper regulations and supervision.