GENEVA: Switzerland’s market watchdog confirmed Thursday that it is contact with the “initiators” of Facebook’s new cryptocurrency, as questions mount over how the money will be regulated.
Switzerland has tried to establish itself as a global cryptocurrencies hub, but the entry into the market of a behemoth like Facebook will increase scrutiny over the rules Switzerland has in place.
“We can confirm that we are in contact with the initiators of the project,” a spokesman for the Swiss Financial Market Supervisory Authority (FINMA), Tobias Lux, told AFP in an email.
The Libra coin plan, launched this week by Facebook and some two dozen partners, is being overseen by a Geneva-based nonprofit called the Libra Association.
Lux declined to comment on the details of FINMA’s exchanges with the Libra Association but said the watchdog’s role was to determine “whether the planned services require approval under Swiss supervisory law and, if so, which.”
The Libra Association has said it registered in Switzerland because the wealthy Alpine nation has “a history of global neutrality and openness to blockchain technology.”
But given Facebook’s international reach, global regulators are unlikely to leave supervision of Libra entirely to the Swiss.
The US Senate committee on banking, housing and urban affairs announced on Wednesday that it would hold hearings next month on “Facebook’s proposed digital currency and data privacy concerns.”
Bank of England Governor Mark Carney has said the Facebook project required scrutiny while French Finance Minister Bruno Le Maire warned Libra cannot be allowed to replace sovereign currencies.
Switzerland, a long-standing global banking hub, has made a series of moves to attract nascent cryptocurrency businesses, including tax breaks and logistical support.
The northern town of Zug has been dubbed “Crypto Valley” because of the influx of virtual currency firms.
Swiss watchdog ‘in contact’ with Facebook cryptocurrency backers
Swiss watchdog ‘in contact’ with Facebook cryptocurrency backers
- Switzerland is trying to establish itself as a global cryptocurrencies hub
- The Libra coin plan, launched this week by Facebook, is being overseen by a Geneva-based nonprofit called the Libra Association
Closing Bell: Saudi main index closes in green at 11,134
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 185.3 points, or 1.69 percent, to close at 11,133.58.
The total trading turnover of the benchmark index was SR6.84 billion ($1.82 billion), as 205 of the listed stocks advanced, while 53 retreated.
The MSCI Tadawul Index increased, up 25.93 points, or 1.76 percent, to close at 1,496.09.
The Kingdom’s parallel market Nomu gained 145.25 points, or 0.62 percent, to close at 23,513.27. This comes as 35 of the listed stocks advanced, while 33 retreated.
The best-performing stock was Middle East Healthcare Co., with its share price surging 10 percent to SR36.30.
Other top performers included Bupa Arabia for Cooperative Insurance Co., which saw its share price rise by 7.89 percent to SR155.90, and Derayah Financial Co., which saw a 7.07 percent increase to SR26.66.
On the downside, Advanced Building Industries Co. recorded the biggest decline of the day, with its shares falling 4.45 percent to SR40.38.
Aldrees Petroleum and Transport Services Co. fell 4.4 percent to SR121.80, while CHUBB Arabia Cooperative Insurance Co. declined 3.77 percent to SR24.
On the announcement front, Saudi Arabian Mining Co. said it has commenced its offering of US dollar-denominated trust certificates, commonly known as sukuk.
The issuance, which runs from Jan. 22 to Jan. 29, is targeted at eligible investors in the Kingdom and internationally.
While the final size, pricing, maturity, and returns of the offering will be determined based on market conditions, the minimum subscription has been set at $200,000.
According to a Tadawul statement, Maaden has appointed a syndicate of 14 joint lead managers, including Albilad Investment, Citigroup, and Goldman Sachs, as well as HSBC, J.P. Morgan, and SNB Capital, to manage the issuance.
Maaden’s share price closed at SR72.45 on the main market, marking a 1.43 percent decrease.
