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Japanese Authorities Analyze The Impact Facebook’s Libra Could Have In The Market

source-logo  usethebitcoin.com  + 6 more 15 July 2019 05:50, UTC

Japanese authorities are trying to understand which is the influence that the Libra cryptocurrency is going to have in the market. There are several regulatory agencies that are requesting more information to Facebook about which are their plans and what they are trying to achieve. The information was released by The New York Times in a recent report. 

Regulatory Agencies Trying To Understand Libra

According to The New York Times, Japanese authorities are currently working with a specifically created group that is analysing the impact that Facebook’s recently released stablecoin Libra could have on monetary policy and on the financial market. 

Facebook announced the creation of a stablecoin on June 18 that is going to be backed by different assets, including the U.S. dollar, the euro, the Japanese Yen and the British pound. According to what Facebook mentioned in its report on June 18, the intention is to help individuals process transactions and provide financial services to people that were not able to have access to them. 

The New York Times explains that the objective of the group that operates in Japan aims at coordinating policies to reduce the negative effects related to Libra’s implementation. That includes topics related to taxes, monetary policy and also payments settlement. This group is going to be formed by the Bank of Japan, the Ministry of Finance and also the Financial Services Agency (FSA). 

Japan is one of the most proactive countries in terms of crypto regulations and adoptions. The FSA has imposed clear regulations to companies operating in the market and to individuals dealing with digital assets. Firms that want to offer crypto-related services have to request permission to the local regulatory agency in order to receive a license to operate in the market. This specifically applies to crypto exchanges that want to offer trading services to users. 

In addition to it, officials explained that they expect other tax and financial regulators to join the group due to the fact that Facebook’s digital asset could have a broad impact around the world. The decision to discuss these issues comes just a few weeks before the upcoming meeting on the G7 finance ministers that is going to take place in Chantilly, France next week. 

Other countries analysing Facebook’s digital asset include the United States, Singapore, France and also the United Kingdom, among others. 

usethebitcoin.com

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