Facebook-backed cryptocurrency Diem has abandoned its efforts to obtain a payment license from Swiss regulator Finma and is instead shifting its focus to the United States
The Diem Association, which oversees the development of digital currencies, has moved its operations to the United States and has partnered with Silvergate, a crypto-friendly US bank that will be the exclusive issuer of DiemUSD Stablecoins.
According to the company, partnership formation is an important step in the preparation of the DiemUSD pilot.
Diem CEO Stuart Levey commented: “We are working on a payment system that is safe for consumers and businesses, makes payments faster and cheaper, and leverages blockchain technology to bring the benefits of the financial system to more people worldwide. Inside. We look forward to working with Silvergate to realize this shared vision. “
Diem Networks US will register as a money services business with the US Treasury Department’s Financial Crimes Investigation Network prior to planning to conduct a pilot of P2P transactions.
The move from Europe can be seen as another setback in the controversial crypto project facing severe opposition from financial regulators.
“Our plan is to keep the project completely within US regulation and no longer require a license from Finma, but the project has a centralized licensing process in Switzerland and more than 20 in Finma and around the world. We have greatly benefited from constructive feedback from other regulators. A world convened by Finma to consider the project, “says Levy.
Facebook Diem shifts business from Switzerland to US
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