Problems Facebook was having a negative impact on the Bitcoin exchange rate
The opposition of regulators and legislators to the launch of Facebook's own cryptocurrency, begins to take on real features of the company, a record fine has been issued and a special law has been developed. Against this background, traders began to fix the “Libra Premium” - the July rise in Bitcoin, due to official confirmation by the social network of cryptoplanes and the release of the White Paper project.
Yesterday's negative closure of Bitcoin provided news about a record $ 5 billion fine to be paid by Facebook to the US budget at the request of the Federal Trade Commission (FTC) for leaking user personal data. We are talking about the company Cambridge Analytica, using the obtained information about the users of the social network to manipulate public opinion for political purposes.
The fine must approve the US Department of Justice, which usually happens automatically, but the press hints at delaying the resolution of this issue in order to use the situation as a lever of pressure on Facebook. However, the payment will not cause economic damage to the Libra project, funded by partners who receive in return the opportunity to have a supernody. Each of them contributes $ 100 million and the names of the 20 first participants are already known, it is planned to raise 100 nodes in total.
Much more dangerous is another initiative that comes from the US Congress, the deputies submitted the “Law on the Preservation of High Technologies Outside Finance” for consideration. The document prohibits the release of cryptocurrency by any IT company with an annual turnover of $ 25 billion. In case of violation, a daily fine of $ 1 million is provided.
Senators will review the law next week, before the Libra hearing on which Facebook Vice President David Marcus is expected to begin. Such decisive action is a response to the request of the Congress left unattended by the company to freeze Libra for the duration of the debate.
Today, the Facebook cryptocurrency project has no friends in America - both branches of government are negative. After Donald Trump's tweet, which directly emphasized the need to regulate Libra, the US Securities Commission began a thorough study of the White Paper project.
SEC commissioners seized on the economic model of the coin, which is tied to a basket of fiat currencies and government bonds. The presence of the latter allows us to consider Stablokin as an ETF fund share, which will require obtaining a license from the department.
How difficult it is to obtain such a document shows the situation with Bitcoin ETF, more than a year has passed since the submission of the first applications for the creation of a mutual fund for cryptocurrency. Start-up Reality Shares tried to open a similar, mixed fund of Fiat, Fed bonds and 15% of Bitcoin, but was also refused by the department.