A discussion has commenced between social media giant social media giant Facebook and the U.S. Commodity and Futures Trading Commission (CFTC) over the company’s crypto stablecoin project. GlobalCoin Cryptocurrency Results in Huge Talks.
The Financial Times reported on Sunday, that Christopher Giancarlo, the CFTC chairman said the agency was in “very early stages of conversations” with Facebook. However, the purpose of the dialogue was to analyze if the firm’s crypto stablecoin could potentially fall under the regulations of CFTC’s remit.
“We’re very interested in understanding it better,” Giancarlo stated in the report. “We can only act on an application, we don’t have anything in front of us.”
Facebook recently held talks to discuss opportunities and regulatory issues for its crypto stablecoin, called GlobalCoin, in both the U.S. and the U.K. with government officials.
GlobalCoin Cryptocurrency Results in Huge Talks. The initiative is to allow Facebook’s global users to transfer money across borders. Also, to make online purchases.
There may be less of a need for derivatives tied to the cryptocurrency, if it could be backed by the U.S. dollar. Also, Giancarlo added that it’s still too soon to determine whether Facebook’s GlobalCoin will fall under the CFTC’s remit.
Giancarlo said he thought the design was “very clever”. The report did add, however, that one top compliance issue for regulators, is whether and how Facebook will adhere to and implement anti-money laundering (AML) and know-your-customer (KYC) measures.