Libra Association has applied for a payment system license in Switzerland

The non-profit organization Libra Association, which is behind the Libra cryptocurrency project, wants to get a license to manage the payment system from the Swiss financial regulator.

Today, the association announced that a license from the Swiss Financial Market Supervisory Authority (FINMA) could “expand opportunities for billions of people.” The association also requested a clarification of its status under local regulation.

“We are engaging in a constructive dialogue with FINMA, and we are encouraged to find a realistic way for the open source network to become a regulated payment system with low problems and high security,” said Dante Disparte, Head of Division Politics and Communications Libra. “This is an important step in the development of Libra, and we look forward to continuing our interaction with all interested parties in the coming months.”

Security issues of the Libra cryptocurrency network have been repeatedly raised by regulators. OpenZeppelin, a cryptocurrency audit firm, said this week
about detecting and fixing a serious vulnerability in the Move language developed by the social network Facebook for the Libra project.

Despite all the friction, the chances of Libra getting regulatory approval are high in Switzerland, since this country is one of the most friendly jurisdictions when it comes to cryptocurrencies and blockchain. Recently, the Swiss regulator first issued
licenses for banking activities of blockchain companies.

Aximetria’s earlier cryptocurrency investment app received a VQF license, which is recognized by the Swiss Financial Market Supervisory Authority. In addition, in July, Bitcoin Suisse applied for a banking license at FINMA.