Facebook May Abandon Libra Due to Watchdog Pressure

Social network believes that one of the main obstacles to launching a project is legal uncertainty
30 July 2019   656

The largest social network Facebook has announced that the launch of the Libra digital currency project may be canceled due to significant pressure from regulators. It is reported by The Block, with reference to the company's statements prepared for the US Securities and Exchange Commission (SEC).

There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.

Facebook Q2 Report Filing to SEC

Facebook is sure that one of the main obstacles to launching a project is legal uncertainty. The situation is aggravated by the alertness of regulators in various countries, which may cause a delay or even prevent Libra from launching.

In addition, representatives of the company noted that they do not have significant experience with cryptocurrencies and blockchain technology, which may adversely affect the ability to create in the market relevant products.

We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results.

Facebook Team

Facebook CEO Mark Zuckerberg said earlier that his company is not abandoning plans to launch Libra’s digital currency and will spend “as much time as it takes” to win over regulators.

Sia Network Developers to Pay $225k Fine

Nebilous, startup from Boston, had to pay fine for the "unregistered securitities sale", which happened back in 2014
02 October 2019   173

Boston-based startup Nebulous, which developed the Sia Network cryptocurrency project, will pay a fine of $ 225,000 to the U.S. Securities and Exchange Commission (SEC) for selling unregistered securities.

Tokensale of Sia was held back in 2014. Total fees amounted to only $ 120 thousand.

Nebulous neither confirmed nor denied the allegations.