Libra will apply for registration in Switzerland
Facebook is going to apply in Switzerland for registering Libra as a payment system and not as a currency.
The story began from FINMA, the regulatory authority for financial institutions, when it announce a new regulatory framework for stablecoins, according to it, they can be recognized as payment systems. Libra had applied before the stablecoin framework came in effect and renew the application in order to be considered in the new framework.
The pass from the regulatory authorities in Switzerland will enable Libra to categorize itself through the FINMA’s framework. Facebook decides to apply for the payment systems category.
Recognizing Libra as a payment system, will mean that it will be included in the Anti - Money Laundering Act. The particular law demands from financial institutions to maintain a certain capital allocation (for credit and operational reasons) while the risk concentration and liquidity should be maintained at proper levels.
The world ambitions of Libra project should have a starting point, the legal entity of the project that will reduce potential risks in the future. Libra’s goal is to offer to unbanked people, a simple currency to trade and financial infrastructure in order to improve their life.