“Stop Facebook’s Libra!” – US consumer protection warns regulators

A long list of US consumer representatives has urged US regulators to curb Facebook’s push into the crypto-asset space. A broad coalition of concerned parties has published a letter this morning to various authorities.

The groups claim to use Libra carries too high risks. Facebook’s activities in this regard should therefore initially be discontinued until the company answers a long list of questions.

On June 18th, the social media giant unveiled its much talked about digital currency “Libra”. Since then, more and more government agencies are expressing concerns about the project due to be released in 2020.

The latest group opposed to the Crypto Asset Project is an ad hoc coalition of 33 consumer protection groups. Among them: Public Citizen, the Economic Policy Institute and the Center for Digital Democracy.display

The group sent a letter of complaint to US regulators this morning. Recipients of the complaint include the US Securities Exchange Commission, the US Federal Trade Commission, the Office of the United States Trade Representative and the US Commodity Futures Trading Commission. The list of concerns was also sent to Calibra, the recently founded subsidiary of the social media company.

The issues raised in the letter concern security, consumer protection, anti-money laundering, whether it could be manipulated through collusion between members, and whether it would affect the national sovereignty of developing countries.

With its announced foray into the crypto asset space , Facebook has caught the attention of lawmakers around the world.

Regulators in the US, UK, France and other countries have all expressed concern about the ambitions of the San Francisco-based company.

In Europe, a G7 Task Force has been set up to help regulators better understand the scope of the project and its likely impact on global finance.

However, not every government agency in the world seems to be equally worried about Facebook’s Libra. Recently, a domestic news publication reported on the Russian Finance Minister, stating that there would be no special arrangements for Libra. Rather, they would simply fall within the scope of the general crypto-asset regulations that the legislator of the country is currently defining.

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