At least 3 members considering cutting ties with Facebook's Libra project - Report

At least three of the 27 companies which are part of Facebook's Libra cryptocurrency project are reportedly evaluating whether to disassociate themselves from the project.

The Financial Times reported the news on Friday, saying that the increased regulatory scrutiny of the project has led to such consideration. Two members told the FT that they were concerned about the regulatory issues, while another member said that they were worried about publicly supporting Libra.

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"I think it's going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra]," one of the founding members of the Libra Association told the news source.

The Libra Association is comprised of big-name companies such as Visa, Mastercard, PayPal, Uber and Spotify. However, Visa CEO and chairman, Alfred F. Kelly, recently said that no company has officially joined the project yet.

Facebook announced the Libra project in mid-June and since then has faced intense regulatory scrutiny from around the world. Facebook's blockchain lead, David Marcus, recently assured senators and lawmakers in the U.S. that Libra won't launch until all concerns are addressed.

Meanwhile, a group of six U.S. lawmakers, led by Democratic Congresswoman Maxine Waters, is planning to visit Switzerland, the association's headquarters, in “the coming days” to discuss the Libra project. 

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.