Libra under scrutiny by UK Information Commissioner’s Office

Ever since the white paper for the Libra token was released, there has been a mixed reaction from various governments around the world as well as regulatory bodies who have shown concern about the implications of the tokens widespread use, especially regarding money laundering and the use of it for criminal activities.

Facebook has had to defend itself at US Congress, has held meetings with world leaders ahead of the launch of the token and now, a joint statement has been released on August 5, 2019, by the UK Information Commissioner’s Office which requests that companies within the Libra Association provide proof to them as to how user data will be protected.

Libra Under Examination

As well as the potential misuse of the token, there have been suspicions, particularly towards Facebook, about how user information will be protected and this was at the centre of the joint statement which delves into the global privacy expectations of the Libra network which is made up of Facebook and 28 other organizations.

As per the letter, the companies have been required to show people how they intend to collect and process user personal data in line with data protection laws. This is because the Libra token is expected to be used by hundreds of millions of people and thus, the amount of financial data the network will be handling is massive.

“These risks are not limited to financial privacy, since the involvement of Facebook Inc., and its expansive categories of data collection on hundreds of millions of users, raises additional concerns,” the letter said. 

The letter has been endorsed by various authorities including the Information and Data Protection Commissioner, the Australian Information and Privacy Commissioner, the Canadian Privacy Commissioner, the President of the Commission for Information Technology and Civil Liberties, the European Data Protection Supervisor, and the United States Commissioner of the Federal Trade Commission.

This goes to show that the interest and concerns surrounding Libra is not limited to any single body but is a global phenomenon for that must be addressed before the token launches. According to the British information commissioner Elizabeth Denham, there is a concern that there is little detail available about the information handling process as well as the things that will be put in place to protect users.

Needless to say, Facebook has its work cut out for them even before the token is released onto the market.