Libra, Facebook’s crypto project has received all the media attention these last few weeks, but not always for right reasons.
Many have questioned the integrity of the project, considering Facebook’s previous scandals with data privacy and market manipulation. Many regulators feel uneasy about this new project, considering the scale on which it is being mounted.
So when the Swiss data protection regulator asked for more details on the project, we could comfortably say that we saw it coming.
The regulators are waiting for Facebook to provide more information, especially on the data protection risks that are associated with the Libra digital currency, Reuters reported on July 23.
The Federal Data Protection and Information Commissioner (FDPIC) sent a letter to the Libra Association on July 17, which reads:
“The Federal Data Protection and Information Commissioner has noted the remarks made by Mr. David Marcus at his hearing before a U.S. Senate committee. The FDPIC stated in his letter that as he had not received any indication on what personal data may be processed, 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.”
The FDIC is the authority responsible for data processing by federal bodies and individuals in Switzerland. Hugo Wyler, the head of communication at the FDPIC said in a news statement that Facebook had not contacted Swiss regulators regarding the registration of its cryptocurrency project.
This is a cause for concern for the digital currency project, which could be potentially blocked in Switzerland if they do not provide the relevant details of their project to the authorities.