Data Privacy Regulators Request More Information on Libra Cryptocurrency
Data protection regulatory agencies from around the world have joined the growing list of those who wish to examine and investigate Facebook’s cryptocurrency project. According to a joint press release on August 6, 2019, the information provided by Facebook isn’t transparent enough and request that the company provide robust information regarding data privacy protection.
Transparency a Major Hurdle for Libra Project
Per the joint statement, the Office of the Australian Information Commissioner (OAIC), in conjunction with the Information Commissioner’s Office (ICO) in the United Kingdom, and other data privacy protection agencies in Canada, the United States, and the European Union (EU), requested that Facebook provides more information on privacy concerning the Libra cryptocurrency.
Speaking on the need for privacy in any company or startup, Angelene Falk, Australian Information Commissioner and Privacy Commissioner, opined:
“This is an important step in a global regulatory movement that is holding online companies to account for how they handle personal information. Given the many initiatives taking place in our finance and technology sector, privacy must be a key component of any significant digital initiative such as Libra.”
Furthermore, the data and privacy regulators stated that though the social media company has assured regulators that it was working on privacy, the information provided wasn’t transparent enough.
In order to get more information out of Facebook and Calibra, the group laid out six questions that properly address its concerns. The group asked if the company could assure data and privacy regulators that there were adequate structures in place to ensure the protection of users’ information.
Also, the regulators wanted to know if the Libra Network would carry out periodic assessments on data protection. Furthermore, if data processors would comply with data protection rules across jurisdictions.
In addition, the group of data privacy regulators wanted to know how the Libra Network would handle information if privacy control settings would be user-friendly, if the Libra Network would protect personal data, and if there are steps to avoid data from being re-identified.
The statement added that companies and organizations associated with the cryptocurrency project would also abide by pertinent laws regarding data protection and privacy
Facebook’s Tainted Past
BTCManager earlier reported that Switzerland’s privacy regulatory agency, the Federal Data Protection and Information Commissioner (FDPIC), requested more information from Facebook’s cryptocurrency project, in order to fully understand the capacity it would operate.
According to the agency, since Facebook named the FDPIC as its official data privacy regulator, there has been no adequate communication between the duo.
Regulators and governments globally have come down hard on the company’s maiden digital currency project, with most of them raising data privacy concerns; Facebook’s previous Cambridge Analytica data episode hasn’t helped in garnering trust from regulators.
Recently, the California-based company stated that there might be a delay in proposed 2020 launch date of the Libra cryptocurrency or worse, the launch might not happen due to the uncertainty from different jurisdictions surrounding the project.