Multiple Australian Regulators Team Up to Oppose the Launch of Libra

Apart from the usual concerns, the regulators are worried about the rise of scams using the digital currency.

After the United States and Europe, the Australian financial regulators now came forward to resist the launch of Facebook’s proposed digital currency.

Eight regulators in the country joined forces to probe Libra; however, the details provided by the social media giant failed to satisfy their concerns, the Australian reported on Wednesday.

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The regulators, which include the Australian Securities & Investments Commission (ASIC), the Office of the Australian Information ­Commissioner (OAIC), Austrac, and the Australian Competition & Consumer Commission, had a meeting with the US executives of Facebook last month.

The watchdogs are concerned that the privately-controlled digital currency will become a tool for cyber scammers and were also alarmed by privacy concerns. Like their global counterparts, the Australian regulators are concerned about the money-laundering and terror financing aspects of the proposed digital currency.

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“If we don’t get answers to these questions from the US-based team we will then need to consider whether formal powers are exercised where available,” Elizabeth Hampton, deputy commissioner at OAIC, stated in an email to other regulators.

No friend in the southern hemisphere

Though publically mute, the Australians agencies were alarmed by Libra right after its launch. In July, a committee from the ASIC warned that “all regulated entities” as well as consumers and investors could be affected if Libra could not be effectively supervised.

In response to the regulators’ concerns, a Facebook spokesperson told the local newspaper: “As a member of the Libra association, we will continue to be a part of dialogue to ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves.”

Meanwhile, in the US, Mark Zuckerburg, the founder and CEO of Facebook, recently addressed the questions of the US Congress regarding the company’s plans with Libra. However, most of his responses were unsatisfactory to the lawmakers.

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