In a bid to conquer the regulatory challenges and uncertainties surrounding Facebook’s yet-to-be-launched Libra cryptocurrency, the highly controversial social media giant has employed the services of Washington-based lobbying firm named FS Vector, reports O’Dwyer’s on August 26, 2019.
Facebook Hires Lobbying Firm
Per sources close to the matter, Facebook has hired the services of FS Vector, a regulatory compliance firm that claims to be focused on helping fintech companies to scale regulatory hurdles. This move was made by Facebook to help smoothen the regulatory rough edges impeding the development of Project Libra, Facebook’s distributed ledger technology and crypto project aimed at providing financial services to billions of unbanked people across the globe.
Reportedly, the lobbying registration documents filed with the U.S. Congress reveals that the multi-billion dollar tech giant has hired retained FS Vector to obtain support for issues related to blockchain policy.
Facebook’s Battle with Regulators
Since Facebook’s release of the Libra Whitepaper and Calibra wallet on June 18, 2019, the proposed project has faced criticisms and serious regulatory scrutiny from governments and financial authorities around the world.
Earlier in August 2019, reports emerged that global data protection regulatory agencies are requesting more information about Libra to examine and investigate the cryptocurrency.
On August 21, 2019, BTCManager informed that the European Commission is investigating Libra from an anti-trust angle to ascertain its potential to overtake its rivals and create a financial monopoly.
U.S. President Donald Trump did not fail to publicize his distaste for cryptocurrencies when he stated on July 12, 2019, that Bitcoin and other digital assets can be used to facilitate crimes.
“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks,” Trump said.
On a lighter note, a major proportion of regulatory setback the social networking company is facing can be attributed to several data privacy scandals it faced in the past, which has led to people’s distrust of its proposed global currency.
Like Maxine Waters, Chairwoman of the House Financial Services Committee noted on June 18, 2019, Facebook has time and again failed to protect its users’ data and now, it is seeking to spread its wings much wider into the lives of people.
Waters in a document on August 23, 2019, also said the Committee would continue to point its searchlight into Libra and Calibra.