Libra’s Early Backers are Considering to Withdraw their Support Due to Growing Pressure from Regulators

Recently, three of Facebook‘s initial sponsors for its scheduled Libra stablecoin launch are thinking about withdrawing their support, taking into consideration the aggressive regulatory response. A recent report from the Financial Times states that the two establishing partners of Facebook’s Libra Association have had talks about what their “right next steps” might be. Moreover, several investors of Facebook’s Libra crypto project are considering pulling out because of developing pressures from the regulatory bodies. 

The recent report from the EU has been moved to examine the Libra Association over prospective antitrust issues. Moreover, in the U.S., legislators have called for the Libra project to be stopped until regulatory issues have been tended to. Therefore, two of the organizations are thinking about withdrawing out of the Libra venture. 

When Libra was introduced in mid-June, it was said that 28 member firms have paid up to 10 million dollars to be a part of the venture. These incorporate big firms, like Visa, Paypal, Mastercard, and Uber. Visa’s CEO declared a month ago that the organizations had signed “nonbinding letter of intent to join Libra,” and were not yet wholly dedicated to the venture.

As per the recent report, the European Commission’s antitrust controllers are the latest to join the rounds of a regulatory investigation into Libra since the project was unveiled this June. The regulatory bodies of the governments, central bankers and regulators, reached an overall mad rush, that by late July, Facebook was compelled to caution its investors that the stablecoin might never be disclosed. 

During a meeting at the United States House of Representatives, Financial Services Committee prior that month, legislators had asked Facebook how they could be relied upon to trust a firm whose storage, collection and misuse of client information had landed it a 5 billion dollars punishment. Moreover, the frustration seems to go two ways, with the individuals saying that Facebook is not happy that the members of the Libra Association are not voicing support for the venture. 

Nonetheless, the confusion has not in any case, have prevented new potential individuals from seeking their interest, including Monex Group Inc, Coincheck proprietor of the hacked Japanese crypto exchange, Maicoin, Taiwanese digital currency trading platform, and Mark Zuckerberg most despised opponents, the Winklevoss Twins. 

Moreover, Facebook states that Libra is a “global currency and financial infrastructure.” In simpler terms, it is a digital asset initiated by Facebook and enabled by new Facebook-made version of the blockchain, and the encrypted technology utilized by Bitcoin and different cryptocurrencies.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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