Earlier today the Libra Association announced it had requested clarification of its status and the Libra coin from Swiss regulator FINMA. Within a matter of hours, FINMA published an initial response.
Libra is the stable coin project initiated by Facebook and backed by 26 major brands including Visa, Mastercard, Paypal and Vodafone.
FINMA acknowledged receipt of Libra’s request and indicated it is standard procedure. In its response, it noted the basic principle is ‘same risks, same rules’.
Perhaps the most interesting conclusion is that the returns and risks of managing Libra would need to be borne entirely by the Libra Association. FINMA stated: “and not – as in the case of a fund provider – by the ‘stable coin’ holders.”
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