Facebook-Backed Diem Abandons Swiss License Application, Will Move To the US

Facebook-backed digital currency project Diem -- formerly known as Libra -- said Wednesday it has withdrawn its application for a Swiss payment license and will instead shift its operations to the United States. From a report: The Diem Association, which oversees development of the Diem digital currency, had been pursuing a payment system license with Switzerland's FINMA watchdog. Diem has now dropped plans to secure Swiss regulatory approval, while its U.S. subsidiary has partnered with Silvergate, a California state-chartered bank, to issue the token. "While our plans take the project fully within the US regulatory perimeter and no longer require a license from FINMA, the project has benefited greatly from the intensive licensing process in Switzerland and the constructive feedback from FINMA and more than two dozen other regulatory authorities from around the world convened by FINMA to consider the project," Stuart Levy, Diem's CEO, said in a statement. Diem said it plans to move its operational headquarters from Geneva to Washington, D.C., where its U.S. unit is based.

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