The Libra Association, the controversial cryptocurrency project led by Facebook, has missed its deadline to respond to a request for more information from regulators in the very country it aims to make its home.
Switzerland’s Federal Data Protection and Information Commissioner (FDPIC) had asked the association to provide it with further details of the project to aid it in planning its regulatory approach. The agency said in a statement on Tuesday, however:
The FDPIC is currently waiting for the Libra Association to respond to its letter of July 17, 2019 and set out their official position.
Further Details Required
The regulator said that it had noted remarks made by David Marcus – the Facebook executive heading the Libra project – at his Congressional hearings last week, that data protection would be regarded as a fundamental element of the project.
However, the Commissioner stated in his original letter that he had not received any indication of what personal data may be processed or any kind of impact assessment of the data protection risks and proposed measures to minimize these risks. The Commissioner added:
The Libra Association should inform him of the current status of the project so that he could assess the extent to which his advisory competences and supervisory powers would apply.
UK Notes Data Privacy Concerns
On Monday, the Financial News reported that the UK Parliamentary Committee on Digital, Culture, Media and Sport was looking to address its concerns to the Libra Association over data protection.
Damian Collins, chair of the committee, told Financial News that parliament was concerned about Facebook’s ability to safeguard the personal financial details of billions of users, given its track record on privacy protection.
Indeed, data protection has been a common concern among government and regulatory bodies ever since Facebook announced the planned of Libra last month.
Facebook’s Marcus probably believed he would set many fears to rest when he appeared before US Congress last week.
Congressional Statement
Prior to this, he sent a letter to US authorities attempting to put some demons to bed over the privacy issue – explaining the system was like other blockchain networks where the identity of the user will never be publicly visible.
The Libra Association will work with policymakers and regulators to make sure this new ecosystem is a value-add to economies, that consumers are protected, and that the role of government oversight and central banks is appropriate.
Strength of Opposition
While the Swiss regulator obviously has concerns of its own that need answering, it does appear that the Libra Association is trying to work with authorities and lawmaking bodies to make the process as open as possible.
Given the strength and depth of the opposition to the project, however, it could be a long time before everyone’s concerns are answered.
The Libra Association did not comment, either on its website or on Twitter, when the FDPIC might expect a response to its letter.
