Hong Kong's leading securities regulator said the world's regulators needed a unified response to Facebook's balance sheet to tackle the "real risk of arbitration." regulatory ".
Ashley Alder, chief executive of Hong Kong's Securities and Futures Commission (SFC), said in a Hong Kong speech on Wednesday that Libra and other Big Tech projects pose a serious threat to the country's fragmented financial regulators. whole world.
The risk does not arise when countries strengthen their national laws against money laundering and consumer protection, but when some do, and others do not, said Alder.
Explaining the threat of "arbitration" – that is, when companies are fleeing stricter jurisdictions for countries subject to looser regulations – Alder said:
"If a retail store is approved in a country, that it 's a security system, a payment system, a fund, a bank. a trading platform or another category (or a combination of these elements), it can easily become global very quickly if based on a Big Tech platform users. "
Alder acknowledged that the explosion of Libra in public opinion has resulted in increased surveillance in the region. Indeed, the recent pressure exerted by the Chinese, American and European regulators has provoked a haemorrhage among the members of the board of directors of the project. Several companies had already left before the official creation of the Libra Association.
Regardless of the performance of the Libra itself or its launch, Alder explains, its very existence has drawn a lot of attention to regulations on cryptographic space.
"By 2018, the cryptographic world was considered to be of marginal importance to the global financial system. The Financial Stability Board, which is essentially the financial regulator of the G20, concluded last year that while blockchain "currencies" such as Bitcoin posed a problem from the point of view of investor protection, they did not pose a significant risk to financial stability, "he said. "But then, Facebook's Balance has arrived and the international regulator community has had to act very quickly."
"But, regardless of its future prospects, the Libra project has brought regulators around the world to take a closer look at the opportunities and risks inherent in virtual assets."
Alder's remarks at the Fintech conference also presided over the release of CCC's updated regulatory framework for cryptographic exchanges.
Hong Kong parts image via Shutterstock