Facebook six questions and six answers to the US Senate

Facebook six questions and six answers to the US Senate

1. How does a payment system based on a new cryptocurrency work? In what scope can the payment system be in compliance with all legal and compliance requirements?

Developers and businesses can build new, available financial services products for people around the world or other businesses based on Libra. This is due to its built on a secure, scalable and reliable Libra blockchain, and the Libra cryptocurrency is backed by a low-risk, highly liquid Libra reserve. Reserve assets can minimize the volatility and universality of Libra cryptocurrencies.

Facebook has actively engaged with financial service providers, regulators, central banks, officials of the Ministry of Finance, as well as policy makers, the Financial Action Task Force against Money Laundering, and the Bank for International Settlements. As the Libra Association expands, the Association will continue to negotiate with relevant regulatory agencies.

The Libra Association will actively cooperate with policy makers and regulators to ensure that the new ecology adds value to the economy while ensuring that users are protected and that the government and central banks play a vital role in the process. The Association is actively working to advance the international dialogue on how blockchains and cryptocurrencies should be regulated.

Facebook subsidiary Calibra is also actively involved with regulators to explore the Calibra digital wallet built on the Libra blockchain. Discussions include: International AML/CFT (AML/CFT), prevention of financial crime, user protection and data privacy. Calibra has applied for a US state cryptocurrency broker moneytransmitter license and registered a MSB (Money Services Business) license at FinCEN.

2. What user protection and privacy protection measures are in the new payment system?

Similar to currently widely used cryptocurrencies, such as Ethereum and Bitcoin, transactions that occur directly on the Libra blockchain are anonymous, ie the user's information is not publicly visible. Only those data related to the transaction, such as the blockchain address of the sender and receiver, the timestamp, and the transaction amount are recorded on the blockchain and are public. Individual and business users using the Libra blockchain will trade through public account addresses that are not associated with their true identity.

The Libra Association will not participate in user transactions and will not store any personal data of Libra users. Transactions on the Libra blockchain will be processed and stored by a verifier node or wallet service provider such as the Calibra Digital Wallet. We expect that most users will use a managed wallet and the managed wallet will provide additional privacy.

Since Libra is an open source platform, third-party developers will be able to build products on the Libra blockchain, such as digital wallets. This will be determined by third-party developers who need to obtain user information and the rules and standards that countries in which they operate. Regulators can ask Calibra or other digital wallet phones to provide users with information or trading activities to ensure that laws and regulations are needed, such as AML/CFT (anti-money laundering / combating the financing of terrorism) to prevent financial crime.

Calibra is still in the process of being improved, providing customer service and support, anti-fraud, and setting up a dedicated fraud and risk control team. Calibra is committed to protecting user privacy by providing simple, understandable, and accessible data management. In addition to special circumstances, Calibra will not share user account information or financial data with Facebook or other third parties without the user's permission. For example, account information and financial data for Calibra users will not be used for portrait or ad customization of Facebook and its social software. The above special circumstances refer to the request of law enforcement agencies or regulatory authorities to provide the required data, such as AML/CFT (anti-money laundering / combating the financing of terrorism) to prevent financial crimes.

3. What financial information does Facebook receive from the financial company?

4. How does Facebook use the information obtained? How to protect these data and information?

Today, in order to make a transfer or transaction on the Facebook platform, users will provide their payment verification information. They usually pay through Facebook Payments Inc. or partner Paypal. Facebook PaymentsInc. is a subsidiary of Facebook and follows AML/CFT. Facebook Payments Inc. collects financial data (eg, payment verification information) required by non-public individuals in the payment process and follows the GLB Act, the 1999 Financial Modernization Act. , and PCI-DSS (third-party payment industry data security standards).

Facebook does not use the user's payment account information (for example, credit card number or bank account information) for ad targeting or portraits. Other transaction information is used for user ad targeting or portraits in the context of Facebook data policies. Facebook collects data about transactions (eg, purchases, transaction amounts, time, dates), and Facebook collects information from user interaction searches to improve the user experience and introduce users to applicable products.

Third-party financial companies working with Facebook can interact with users based on the Facebook platform. For example, third-party financial companies that work with Facebook use robots or APIs to facilitate interaction with users. Although Facebook provides a platform for such interactions, it does not obtain payment verification information for these interactions.

5. Will Facebook share or sell user information with unrelated third parties?

Facebook does not share or sell user information to unrelated third parties unless it applies to the GLB Act.

6. Does Facebook get personal (group) credit status, credit information, personal reputation, personal characteristics or lifestyle for (Facebook or unrelated third-party agencies) recommendation about 1) credit card 2) insurance 3) recruitment 4) Leased products or services?

7. How does Facebook ensure that these credit information that violates the Federal Credit Reporting Act (FCR) is not used?

Following data policies, service regulations, and other user-facing announcements, Facebook does not restrict user sharing and publish information they want to disclose. Facebook follows the Federal Credit Reporting Act (FCRA) and does not share any user's credit information with third parties. Follow the rules for the adoption and use of personal information by users who provide credit reporting agencies and credit reports (such as banks, lenders, etc.) to ensure the accuracy of personal information and to protect the privacy of personal information. Under no circumstances will Facebook obtain or use the user's personal gratification report or credit score. (chain on finance)