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Brussels questions Facebook over Libra risks

By Ramla Soni

Brussels is questioning Facebook over potential financial risks posed by its cryptocurrency Libra as the EU prepares to overhaul regulation of digital currencies, the Financial Times reports.

Brussels questions Facebook over Libra risks

The Libra Association and Facebook are being questioned by the European Commission to respond to a series of questions on financial stability, money laundering and data privacy risks that could be posed by the project.

The commission’s questionnaire is part of a drive by the EU’s financial services commissioner, Valdis Dombrovskis, to determine how projects such as Libra should be regulated in the EU, if fresh legislation is needed, and whether Facebook’s coin proposal should be allowed to operate in the bloc.

his comes as Libra faces pressure to explain to regulators how it plans to set up a digital currency that could be used by 2.4 billion Facebook users.

Last month, Libra’s founders were questioned by 26 central bank officials in the first big encounter between Facebook and regulators.

European policymakers think that Libra may be popular in the EU, where cross-border payments are still a challenge for consumers.

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