European Union in Dilemma over Libra Regulations

One of the major hurdles on the path of crypto evolution is the regulatory compliance which most of the governments across the world are still confused about. The latest dilemma is the one faced by the European Union over Libra.

Social media giant Facebook, has been quite vocal about its foray into cryptocurrency development, and is set to launch their token Libra in 2020.

The issue is the same as the others. While the over-regulation of cryptocurrency poses the risk of losing its economically beneficial aspects, keeping the regulations on the lighter side can put more power in the hands of those who run the coins. On that note, EU is having a hard time figuring out what it should do with Facebook’s Libra.

On February 19, a memo was issued by the EU Commission, stating that the Libra Commission has failed to provide the proper responses, expected of them. The information provided was deemed insufficient by the commission.

About harnessing the crypto potential, the commission further stated that they ready to take swift action by placing the regulatory compliances. This goes by their previous stand to monitor and control stable coins and keep a check on any risk related to the region’s financial stability.

October 13, 2019, Facebook CEO Mark Zuckerberg appeared before the U.S. House of Representatives Financial Services Committee. However, his account about the questions asked lawmakers were cited as insufficient even then. 

At present government bodies in both the European Union and the United States working to have a better understanding of cryptocurrency. The Commission has issued an open public consultation on the subject which will be available till March 19th. Meanwhile, the IRS or Internal Revenue Service in the US is gearing up for a crypto summit on March 3rd.

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