Swiss Data Agency Claims No Contact with Facebook Over Libra

Michael LaVere
  • David Marcus told Congress on Tuesday that the FDPIC would oversee data protection and security for libra. 
  • Swiss agency claims to have had no contact with Facebook.

The Swiss agency supposedly responsible for overseeing the data protection of libra reports having no contact with Facebook. 

David Marcus Goes Before Congress

In a hearing held before members of the US Senate Banking Committee on Tuesday, Facebook’s David Marcus attempted to quell concerns over libra’s security.

Marcus explained that data and privacy protections for the company’s digital currency would be under the regulation of the Swiss Federal Data Protection and Information Commissioner (FDPIC). 

However, FDPIC claims to have had no contact with Facebook. 

No Word From Facebook

According to a report confirmed by CNBC, the social media platform has yet to reach out to FDPIC, despite Marcus’s testimony to Congress. 

Hugo Wyler, head of communication at FDPIC, told CNBC, 

“We have taken note of the statements made by David Marcus, Chief of Calibra, on our potential role as data protection supervisory authority in the Libra context. Until today we have not been contacted by the promoters of Libra.”

Wyler left the door open for his agency to work with Facebook, but explained they would need more information before proceeding. 

He continued, 

“We expect Facebook or its promoters to provide us with concrete information when the time comes. Only then will we be able to examine the extent to which our legal advisory and supervisory competence is given. In any case, we are following the development of the project in the public debate.”

A spokesperson for Facebook confirmed that they have yet to contact the FDPIC.

Libra Facing Pressure

Since officially announcing the digital currency in June, libra has come under fire from regulators around the world. US Federal Reserve Chairman Jerome Powell claimed the digital currency posed “serious concerns” for money laundering and user protection. On Tuesday, Marcus was repeatedly grilled by senators with questions related to data privacy. 

Marcus also told Congress that the Swiss Financial Markets Supervisory Authority (FINMA), would be the main financial regulator for Libra. Unlike the FDPIC, the Swiss regulator has confirmed its partnership with Facebook.

Facebook appears to have kicked a hornet’s nest in the US Congress over issuing its digital currency.

Last week, an unofficial copy of a bill surfaced online with the title “Keep Big Tech out of Finance.” The bill was reportedly drafted by members of the House Financial Services Committee--who will meet with Facebook on Wednesday--with the goal of preventing large platforms from issuing their own currency. 

Crypto Mining Hardware Manufacturer Canaan Downgrades IPO Target to $100 Million

Michael LaVere
  • Crypto mining manufacturer Canaan Creative has downgraded its IPO target price to $100 million.
  • The previous initial public offering filing had a target price of $400 million. 

Crypto mining machine manufacturer Canaan Creative has updated the terms of its initial public offering (IPO) filing to list shares on a U.S. stock exchange, which includes downgrading its target raise to $100 million. 

According to the updated filing with the U.S. Securities and Exchange Commission (SEC), Canaan has downgraded its IPO from an original target of $400 million to $100 million. The IPO was first announced at the end of October, with Canaan looking to succeed in the launch of a public offering where it’s crypto mining rig competitor Bitmain had previously failed. 

The new filing states that Canaan is aiming to offer 10 million American depositary shares at a price of between $9 and $11 per share. The updated IPO price also pegs Canaan’s diluted market value at around $1.5 billion. Last week it was reported that Canaan had generated a Q3 profit of $13 million, compared to a total net profit of $8.3 million for all of 2018.

Assuming the IPO is a success, Canaan would become the first major bitcoin mining rig manufacturer to go public in the traditional stock market. 

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