Libra Could Be Being Looked At By Australian Regulation Authority

The controversial project from Facebook, Libra is being potentially going to be looked over by the Australian Prudential Regulation Authority (APRA). An official proposal was published this week by APRA to the Senate in submitting potential regulatory framework driven for fintech and regulatory technology. 

As it says in the proposal, the framework…

“...is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stablecoin eco-systems that have been the subject of significant attention in recent months.”

The authority confesses that online wallets are becoming even more crucial for the financial system. This is thanks to mobile apps becoming increasingly popular. The regulator sees two specific types of digital wallets though:

“Some, but not all, digital wallets hold stored value on behalf of customers and are pre-paid facilities. Others (such as Apple Pay) hold customers’ credit/debit card details and only facilitate payments from that nominated account.”

The Australian body goes onto note that it would be looking over digital wallets that are commonly used in storage and for payments. This includes Libra’s parent Calibra wallet.

As reported by CoinTelegraph:

“For wallets that actually hold the user’s value, APRA has started developing a new principles-based prudential standard to simplify the regulatory requirements for new types of fintech businesses.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!