EU Official: We Can't Regulate Libra Without More Details

The European Union is still trying to figure out what to do about Libra, according to a new memo.

AccessTimeIconFeb 19, 2020 at 8:03 p.m. UTC
Updated Sep 13, 2021 at 12:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The European Union is still trying to figure out what to do about Libra, according to a memo released Tuesday by European Commission Executive Vice-President Valdis Dombrovskis.

The indecisiveness stems from a lack of actionable information. Specifically, Libra “lacks detail,” according to Dombrovskis. 

Despite repeatedly asking the Facebook-launched Libra Association for information about its payments ecosystem and eponymous stablecoin, the Commission – the EU's executive branch – has yet to determine what, exactly, Libra is.

“As Libra is still a project, and thereby a moving target, the information provided remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law," he said.

But he said the Commission wants to “act swiftly” in creating regulations for Libra, stablecoins and other EU crypto-asset projects. This reaffirms the Commission’s Dec. 5, 2019, declaration that it will police stablecoins and their “risk” to financial stability.

Libra faced regulatory backlash after it was announced last year, with lawmakers and agencies worldwide calling for a halt to its development until the Facebook-led project could be scrutinized.

Facebook CEO Mark Zuckerberg has said the Libra Association, which formed its own governing council with 20 companies in mid-October, will wait until regulators are comfortable before launching.

Zuckerberg said in testimony before a U.S. congressional committee last year that Facebook would withdraw from the project if the association chooses to launch before securing regulatory approvals.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.