The Bank of England is drafting tough British Libra regulations in the U.K. Facebook’s Libra is systemically important and will face stringent regulations whenever it is launched in the United Kingdom, says Bank of England. The BOE has put the yet-to-launch cryptocurrency project on notice and mentioned that it would have to undergo tight monetary inspections in the country.
On Tuesday, the bank proclaimed that the upcoming currency would be ‘systemically important’ to the financial network. Thus, it needs to be regulated as per the current rules. The ‘Financial Policy Committee’ (FPC) of the central bank said that British regulators would undertake a detailed analysis of the Libra’s functions, its impact on the financial network and check whether current regulations will apply to Libra or not.
Expect stringent British Libra regulations just like E.U.
As per the FPC that Libra is a systemically important currency. Its resilience will be dependent upon the Libra Reserve along with the Libra Association. Furthermore, financial activities undertaken by associated entities like wallets, validators, and cryptocurrency exchanges will also have an impact on the Libra.
What this means is that simple cryptocurrency wallets won’t cut. Libra wallets must also adhere to the conventional capital requirements and regulations proposed for traditional systems. They must be able to perform such functions as well besides offering the digital wallets features. Read More...