Facebook’s (FB.O) Libra cryptocurrency suffered another setback on Wednesday when Switzerland said the proposed payments system could face strict rules that typically apply to banks, on top of tough anti-money laundering laws.
The world’s largest social media network announced plans in June to launch the new currency as it expands into e-commerce but Libra has come under fire from regulators around the world who fear it could destabilize the global financial system. The statement by Switzerland’s financial market supervisor FINMA came as the Libra Association, which is based in Geneva, said it planned to apply to become a licensed payments system in the country. FINMA said the project would be more than just a global payments system and would therefore be subject to extra requirements, from liquidity and capital allocations for risk to the management of reserves that will back the digital tokens.
