Six US e-payments companies have withdrawn from the Libra cryptocurrency project due to concerns over their ability to comply with regulatory measures and the possibility of using them for money laundering.

According to reports published yesterday by The Verg, PayPal was the first to withdraw from the Libra project, followed by a mass withdrawal, when Visa, MasterCard, Strip and Ebay and Mercado Bajo withdrew from the Libra project within four hours of last Friday.

Only eBay, which has yet to determine its position, is left with big e-payment companies. This development means that large e-payment companies in the US are virtually out of the new Facebook project.

Deadly timing

The mass withdrawal came at a deadly time for the project, as it took place just three days before the first expanded meeting of the founding board of the Libra Society, which was scheduled to be held in Geneva, Switzerland, yesterday, with the participation of 28 different organizations, organizations and electronic payment companies, which agreed during the last period In the association and support the currency «Libra». According to the previously announced meeting schedule, the meeting was supposed to formally announce the establishment of the association, approve the basic charter through which the new currency will operate, as well as answer all the questions that were not clarified in the preliminary white paper, on project governance. And its rules, defining the different roles that different parties must play before each member signs the agreement and the basic charter.

Clarifications

A spokesman for the company «Visa», said that «the company decided not to join the Association (Libra) at the moment, and will continue to evaluate, to determine its final decision through a number of factors, including the ability of the Association to meet all regulatory expectations required Fully".

“We respect LIBRA's vision very strongly, but eBay has made the decision not to move forward as a founding member for the time being, and we will focus on delivering managed payments to our customers,” said eBay. Streep said in a statement that it supports projects aimed at making online commerce easier around the world, noting that the Libra project has this potential. She added: «We will follow the progress of the project closely and remain open to work with the Association (Libra) at a later stage».

Requirements

Wall Street Journal analysts described the withdrawal of the six companies as a "panic rush to the door" to emerge before the last minute, explaining that all withdrawals are companies responsible for processing and executing electronic payments, and have specific regulatory obligations and requirements related to combating fraud and money laundering. And sanctions. Analysts said it was "clear that the (Libera) currency is difficult to meet those requirements, and to comply adequately with regulatory measures imposed by governments."

No responsibility

"Facebook wants the benefits of engaging in financial activities without taking responsibility for regulatory compliance as a financial services company," said Senator Schatz and Brown.

Analysts say that such a statement implies that Libra may make things too easy for money launderers, so Visa, MasterCard and others found that they could end up taking the blame. Process and execute electronic payments, and make them feel that their central or pivotal actions may be eliminated through regulatory actions. What is reinforced by this hypothesis is the initial vision of the currency «Libra», which «put« Facebook », where dealing with the problems of compliance with laws and regulatory restrictions to those responsible for the implementation and processing of financial transactions, in the hope that« Visa »and MasterCard addresses the complex compliance requirements involved in dollar trading for Libra, as they are the most experienced and sophisticated in this area.

Continuous noise

Facebook announced the official adoption of the project «Libera» crypto currency on June 18, and the announcement made a big fuss, about the benefits of the new currency, including building a modern high-security payment network that will allow billions of people who lack services Get financial services from new, easy and fast. When it was launched, it looked like a disturbing new interface in the massive expansion of Facebook, and the noise and controversy over the Libra project continued, but Facebook was about to have the support of the world's most powerful financial companies to help launch and operate the new currency. As part of the Libra Society, then a sudden, simultaneous mass withdrawal took place, adding to the hype around the project.