Facebook Crypto Is Raising Lawmakers’ Eyebrows

by: The Knowledge Group

June 24, 2019


The just-announced Facebook cryptocurrency, Libra, has triggered a new privacy outcry. Can Facebook be trusted not to mishandle users’ financial data? But there are questions even more momentous. Facebook’s partnerships with leading credit companies to launch the currency could let a group of powerful corporations run a borderless currency big enough to potentially disrupt world monetary systems.

The currency will be overseen by the Libra Association, based in Switzerland, encompassing media tech, gig economy, and financial players in addition to Facebook.

Spotlight on the Need for U.S. Regulatory Framework

Libra would allow for anonymous transactions, but suspected fraudsters could be unmasked in much the same way federal prosecutors and the FBI already track down bitcoin fraudsters.

Nevertheless, Rep. Maxine Waters (D-CA) has called for a moratorium on Libra, pending an examination of privacy and security issues.

Libra, says Rep. Darren Soto (D-FL), could lead to “a more global and inclusive financial infrastructure” given its potential to engage unbanked and underbanked households.

In any event, cryptocurrency is here to stay. How to restrain it is now the question.

The Knowledge Group Delves Into Crypto and Online Privacy

Join The Knowledge Group, and examine workplace privacy a year into the General Data Protection Regulation (GDPR). Our CLE and CPE webcast will run Tuesday, June 25, 2019, 3 – 4 p.m. eastern time.

Businesses in Europe and firms providing products and services to European companies must adhere to the GDPR, which outlaws collection and use of EU citizens’ personal information without consent. Our panel will discuss results and ramifications so far—and workplace privacy rules generally.

Later this summer, we’ll examine the SEC’s heightened enforcement focus for cryptocurrency, at a lunchtime webcast on Wednesday, July 17, 2019. What compliance hurdles could your company face? This will be an excellent session for cryptocurrency professionals, as well as securities law experts, white-collar crime experts, fraud analysts, risk managers, and compliance officers. We invite you to register now.