As we slowly draw nearer to the launch of the Facebook’s cryptocurrency project, the social media giant has revealed that it will not render its digital currency services in India, its largest audience, due to the regulatory war against cryptocurrency in the country.
With over 300 million accounts on the platform, India is Facebook’s largest market. Data from Statista shows that the number of Facebook users in India is expected to reach 444.2 million by 2023.
According to a Facebook representative who contacted Bloomberg via an email, the social media company has “no plans to offer Calibra in India,” because “as you may know, there are local restrictions within India that made a launch of Calibra not possible at this time,” the spokesman added.
The India crypto space has been facing severe heat from the financial regulators in the country, with the Reserve Bank prohibiting local banks from dealing with digital currencies.
Earlier this year, we reported that banks were forcibly asking customers to vow never to transact in cryptocurrencies before permitting them to operate an account.
More recently, there was a proposal that the government should create a law that would see defaulters spending at least ten years in prison for using cryptocurrencies.
Although a Facebook’s spokesman in London noted that “Calibra will respect the legislation,” they are currently discussing with various governments to see if they can update their legislation.
While Facebook continues to make efforts to meet the regulatory requirements of different countries where it wants to offer its digital currency services, the company recently received an official letter from the US Congress to stop Libra.
The letter claims that the social media giant is trying to create a financial system from Switzerland with the intent to rival the US dollar and monetary policy.
Similarly, the French Finance Minister, Bruno Le Maire issued a warning that Facebook’s Libra must not be allowed to become a sovereign currency across different countries.
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