Multiple Partners of Libra Association Considering to Back Out

Friday, 23/08/2019 | 11:36 GMT by Arnab Shome
  • Facebook has 28 partners in total for its crypto project.
Multiple Partners of Libra Association Considering to Back Out
FM

Facebook’s cryptocurrency project is facing another roadblock as some of its Libra Association partners are considering to end their alliance amid growing regulatory tension.

According to a Financial Times report, at least three companies have raised concerns as the social media company’s project is facing harsh criticisms from regulators all over the world. The report, however, did not name any company.

This came only days after the revelation made by Bloomberg that the social media company is facing an antitrust probe by the European Commission.

“It’s going to be difficult for partners who want to be seen as in [regulatory] compliance,” one of the companies told the publication.

Attracting big names to back the crypto project

Facebook partnered with 28 Payments and tech players, including Visa, Mastercard, Uber, and Paypal, to be a part of the Swiss-based Libra Association and run nodes for the digital currency. Though not officially declared, each partner needed to pay $10 million to the social media company to get the status of a partner.

Visa CEO Alfred F. Kelly, Jr., last month, confirmed that none of the companies are official partners yet as they only signed a non-binding letter of the agreement so far.

Meanwhile, the president of Monex group, parent of Japanese crypto Exchange Coincheck, recently revealed that it has applied to be a member of the Libra Association and will finalize its decision by the end of summer.

In the United States, the Menlo Park-headquartered company faced two hearings for the privacy concerns of Libra and was requested by multiple lawmakers to halt the development until the regulatory concerns are clear.

Facebook is also trying its best to push its crypto initiative into Washington and recently hired Susan Zook, a former aide to US Senator Mike Crapo (R-Idaho), to lobby for Libra.

Facebook’s cryptocurrency project is facing another roadblock as some of its Libra Association partners are considering to end their alliance amid growing regulatory tension.

According to a Financial Times report, at least three companies have raised concerns as the social media company’s project is facing harsh criticisms from regulators all over the world. The report, however, did not name any company.

This came only days after the revelation made by Bloomberg that the social media company is facing an antitrust probe by the European Commission.

“It’s going to be difficult for partners who want to be seen as in [regulatory] compliance,” one of the companies told the publication.

Attracting big names to back the crypto project

Facebook partnered with 28 Payments and tech players, including Visa, Mastercard, Uber, and Paypal, to be a part of the Swiss-based Libra Association and run nodes for the digital currency. Though not officially declared, each partner needed to pay $10 million to the social media company to get the status of a partner.

Visa CEO Alfred F. Kelly, Jr., last month, confirmed that none of the companies are official partners yet as they only signed a non-binding letter of the agreement so far.

Meanwhile, the president of Monex group, parent of Japanese crypto Exchange Coincheck, recently revealed that it has applied to be a member of the Libra Association and will finalize its decision by the end of summer.

In the United States, the Menlo Park-headquartered company faced two hearings for the privacy concerns of Libra and was requested by multiple lawmakers to halt the development until the regulatory concerns are clear.

Facebook is also trying its best to push its crypto initiative into Washington and recently hired Susan Zook, a former aide to US Senator Mike Crapo (R-Idaho), to lobby for Libra.

About the Author: Arnab Shome
Arnab Shome
  • 6359 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6359 Articles
  • 80 Followers

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