Sunday, November 1, 2020

US Watchdog Groups Call for Congress to Put a Freeze on Facebook’s Libra

-

A group of North American privacy and consumer watchdogs is asking the U.S. Congress to halt Facebook‘s Libra project.

In a letter posted by Public Citizen, the group details a list of issues they have with Facebook’s cryptocurrency. The more than 30 signers include the Center for Digital Democracy, Consumer Reports, and the Service Employees International Union.

“We call on Congress and regulators to impose a moratorium on Facebook’s Libra and related plans until the profound questions raised by the proposal are addressed,” they write, echoing similar demands by House Financial Services Committee Chair Maxine Waters. Her panel and its Senate counterpart are scheduled to hold hearings on Libra this month.

Primarily liberal-leaning, these groups are concerned with the effect Libra will have on the world economy, especially in the lives of the unbanked. The signers are also concerned with the currency’s governance and its effect on national sovereignty, asking questions like “What impact might Libra have on monetary policy in smaller and developing countries?”

- Advertisement -

The questions, though thorough, suggest the writers are unaware of the extent to which cryptocurrency business already comply with know-your-customer (KYC) and anti-money-laundering (AML) regulations.

For example, the group asks:

“Wouldn’t Libra provide an easy mechanism for money laundering? Would the Libra Association apply the anti-money laundering rules imposed by many nations? Would its technology even permit ‘know your customer’ type standards? Will all wallet providers be required to adhere to such rules? Should a private association be in the business of applying such standards?”

“We have too much recent experience with insufficiently regulated financial markets spinning out of control to let this happen again,” the consumer groups add, likely referring to the 2008 crash. “The Facebook proposal must be put on hold until these numerous and fundamental questions are resolved.”

Obviously, this is not a binding document, but that these groups – and their associated constituencies – are concerning themselves with Libra shows just how far Facebook’s tendrils are reaching into daily life.

- Advertisement -

MUST READ

Former Venezuelan national treasurer indicted in US for money laundering

Hugo Chávez’s former nurse has been charged with money laundering in a Miami federal court, accused of taking bribes from a billionaire media mogul...

Actress Lori Loughlin begins 2-month prison sentence for role in college admissions scam

Actress Lori Loughlin reported to a federal prison in Northern California on Friday to start a two-month sentence for her role in a massive...

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Former Romanian parliament speaker jailed for corruption

The Bucharest Court of Appeal sentenced Bogdan Olteanu, a former president of Romania’s Chamber of Deputies, to five years in jail for corruption. The decision...

Former Columbus mayor Eisenga charged with bank fraud

A former Columbus mayor and businessman who was once at the center of a controversial bill aimed at reducing child support payments for wealthy...

Greek ex-minister Tsochadzopoulos, wife sentenced for money laundering

Former minister Akis Tsochadzopoulos, his wife and his cousin were found guilty of money laundering by a criminal appeals court on Tuesday. Each was served...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks