Some months ago Facebook announced that it will launch a cryptocurrency payment service. In that effect, the company searched for allies that could support its new ideas-dubbed Project Libra. Up to now, Facebook is in talks with several e-commerce companies. The social media giant has also approached different financial firms to support its crypto payment service.
The latest reports reveal that Facebook has begun a discussion with the United States Commodity and Futures Trading Commission (CFTC) over its stablecoin initiative. A report from the Financial Times on Sunday quotes the CFTC chairman Christopher Giancarlo commenting on that matter. The chairman acknowledged that the agency held ‘early stages of conversations’ with Facebook.
The aim of these discussions was to better understand if Facebook’s crypto stablecoin could maybe fall under the CFTC’s regulatory remit. The chairman was quoted saying that the authorities are quite interested in understanding the stablecoin better. He further stated that they will only act on an application since as it stands the agency has nothing in front of them.
The news follows recent reports that the Facebook also held talks with government officials of the UK and the US. In those talks, they discussed opportunities and regulatory issues for Facebook’s crypto known as Globalcoin. The token under Project Libra allegedly aims at enabling Facebook’s global users to send and receive money across borders and to make online purchases.
Giancarlo added that it is still early to determine whether Facebook’s GlobalCoin could fall under CFTC’s remit. However, he stated that if the GlobalCoin would be backed by the US dollar, there could be reduced needs for derivatives tied to it.
The chairman of CFTC thinks that the GlobalCoin design is very clever. But, the report adds that a major compliance issue by authorities is whether and how Facebook will comply to and implement the anti-money laundering and KYC measures.
It appears that the giant social media platform Facebook has finally decided to make a move in the crypto space, even though they have blocked crypto-related advertisement in the past due to companies that were promoting “make money” software like the Bitcoin Trader without being compliant to its T&C. This is great news for the crypto space, which appears to be finally getting under levels seen on late 2017.