Facebook's Inches Towards Global Regulatory Compliance, Applies for New York BitLicense

Facebook's initiative to create an accessible, frictionless, globally-available cryptocurrency and payments network is brushing up against unprecedented regulatory hurdles, at least according to a new report from Reuters.

Facebook's path forward will involve careful orchestration with central banks, financial overseers, and enforcement officers around the world.

Calibra, a Facebook subsidiary that will develop a wallet and financial services for the Facebook ecosystem, has registered as a money services business with the U.S. Financial Crimes and Enforcement Network, applied for money-transfer licenses in the United States, and began the process to obtain a BitLicense from New York's Department of Financial Services.

The company has also reportedly spoken with authorities at Britain's Financial Conduct Authority, the Bank of England, and Switzerland's financial regulator, FINMA. Additionally, the Russian Ministry of Finance said Libra will be treated in Russia like any other digital asset, with forthcoming regulations expected.

Despite these steps toward compliance, Facebook "Will not get a free pass anywhere," said Park.

Libra was put forward at a time when Facebook is already facing public and governmental scrutiny for its outsized influence and questionable privacy policies.

While Libra is not exclusively Facebook's project, being overseen by a consortium of corporate and non-governmental investors based in Geneva called the Libra Association, the currency itself faces existential challenges.

"The scrutiny that we've seen is something that we expected and welcome," a Facebook spokesman said.

A Facebook representative told Reuters that these reserves would follow the monetary policies of the source countries.

Given the anti-trust roadblocks Facebook is already facing, as well as the challenges of attempting to disrupt global finance with system's planned launch in 2020, at least one analyst is predicting Facebook hasn't fully considered their position.