RBA to keep an eye on Facebook’s global cryptocurrency plans

Maria Nikolova

The Payment System Board discussed the announcement by Facebook of the proposed introduction of a ‘global cryptocurrency’.

The Payments System Board, one of two boards of the Reserve Bank of Australia, has earlier today posted an update regarding its August 2019 Meeting.

The Payments System Board, which responsible for the Reserve Bank’s payments system policy, including policy in relation to clearing and settlement (CS) facilities, discussed a variety of issues at its meeting today, including crypto-assets.

The Board discussed the announcement by Facebook of the proposed introduction of a ‘global cryptocurrency’ as well as a new Facebook subsidiary to provide digital wallet services.

“Bank staff will continue to coordinate with relevant domestic and overseas regulators, to ensure that any payments system implications are appropriately addressed before any launch”.

Let’s note that, in Australia, the Treasury released a paper in January seeking views on the potential benefits and risks of ICOs and the application of the domestic regulatory framework to ICOs.

Relatedly, ASIC has continued its work to mitigate potential harm from crypto-assets to consumers and investors. In particular, ASIC intends to monitor ICOs closely to ensure compliant behaviour, and to introduce market infrastructure regulation for crypto-currency exchanges.

Effective April 3, 2018, digital currency exchange providers have additional AML/CTF obligations. These include:

  • adopting and maintaining an AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks;
  • identifying and verifying the identities of their customers;
  • reporting to AUSTRAC suspicious matters, and transactions involving physical currency of $10,000 or more;
  • keeping certain records for seven years.

Regarding the stance of other jurisdictions towards Facebook’s Libra, let’s recall that, in June this year, John Glen, Economic Secretary to the UK Treasury, brushed off a question about the launch.

The question was:

“To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of plans by Facebook to launch its own crypto-currency, Libra, on the stability of the financial system”.

John Glen answered that the Government does not comment on the proposed business models of individual companies.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<