Most recently, Australia, too, joined them expressing opposition to it. TheÂ Office of the Australian Information Commissioner (OAIC) is engaging in a broader regulatory approach.
Reportedly, the government agency has emailed other regulators in the country to âuse their formal powersâ to press Facebook on addressing their concerns.Â Elizabeth Hampton, theÂ deputy commissioner of the agency noted,
âIf we donât get answers to these questions from the U.S.-based team we will then need to consider whether formal powers are exercised where available.â
The financial regulators in the country met with Facebook Australiaâs execs to grab details on Libra. They were left unsatisfied.
The U.S. based team of Facebook will be called upon formally by Australian regulators to chalk out their crypto plans with them.
The government is raising concerns that echo with the other developed countries as well â loss of monetary control, along with security and privacy of customersâ financial and personal details. The regulators seem to have further concerns that they plan to introduce once they get the details.
TheÂ Australian Securities and Investments Commission (ASIC) which raised concerns about in July as well, noted that there are a plethora of risk associated with it, it said,
âWe also expect that we may identify more risks and threats once we have more information,â
International Collaboration for Libra and Stablecoins
TheÂ International Organization of Securities Commission (IOSCO) released a statement on âemerging global stablecoin proposalsâ on Monday. The press release noted that stablecoins âare typical of regulated securities.â
Moreover, their current uncharted existence raises significant risks for global governments. If they are classified as securities, they will be required to follow the existing international guidelines on them. The organizationâs letter also notes,
âWe therefore encourage international collaboration, so the risks relating to stablecoins can be identified and mitigated, and the potential benefits realised,â
Notably, the organizationâs membership regulates more than 95% of the worldâs securities markets in more than 115 jurisdictions, and it continues to expand.
This view not only extends to Facebookâs crypto plans, libra, but also numerous other stablecoins. They include Tether, USDC, MakerDAO, TUSD, and so on. These stablecoins have become an integral part of trading crypto. Hence, the laws could have newfound implications on the markets.
What changes do you expect in the market if stablecoins are regulated as securities? Please share your views with us.Â
The post More Regulatory Hurdles to Facebookâs Stablecoin â Could it Affect Crypto Markets? appeared first on Coingape.