The Swiss Financial Market Supervisory Authority FINMA announces that Diem Networks GmbH is withdrawing its application for authorisation as a payment system in Switzerland, which was already at an advanced stage. Diem is planning to launch the payment system from the USA in a first phase because initially the project will focus on the USA as its target market and because it is now based on the US currency.
Diem Networks GmbH submitted an application for authorisation as a payment system in accordance with the Financial Market Infrastructure Act (FMIA) to FINMA in April 2020 (formerly the “Libra Association” cf. press release). The application was originally based on a stablecoin linked to a basket of currencies. It has since been revised to reflect significant changes that were made to the project.
Diem planning to launch project in the USA with a focus on US currency
Because initially the USA is an important target market for the project and because it is now only based on a stablecoin linked to the US dollar, the Diem Group is planning to launch the payment system from the USA in a first phase. Furthermore, for the time being the payment system will focus on US participants. Diem Networks GmbH has therefore decided to withdraw the licence application in Switzerland.
Contact
Tobias Lux, Spokesperson
Tel. +41 31 327 91 71
tobias.lux@finma.ch
and
Vinzenz Mathys, Spokesperson
Tel. +41 31 327 91 71
vinzenz.mathys@finma.ch
