The Libra Association, the entity responsible for managing Facebook’s cryptocurrency Libra, has announced plans to apply for a payments licence in Switzerland.

As part of the process, the organisation has submitted a request with the authorities to clarify the regulatory status of the Libra coin.

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FINMA, the Swiss financial market supervisory authority, also acknowledged receiving the Libra Association application.

The move confirms the organisation’s plans to make Switzerland its home while other countries have stepped up regulatory oversight over cryptocurrencies.

It comes three months after Facebook announced its plans to launch its cryptocurrency Libra. The cryptocurrency will be powered by an indigenously created version of blockchain.

Libra head of policy and communications said: “Since our vision for Libra was announced 3 months ago, we have maintained our commitment that technology-powered fnancial services innovation and strong regulatory compliance and oversight are not in competition.

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“We are engaging in constructive dialogue with FINMA and are encouraged to see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system.

“This is an important step in Libra’s evolution, and we look forward to continuing our engagement with all stakeholders over the coming months.”

On the other hand, FINMA indicated that Libra may need to comply with stricter regulatory rules, besides anti-money laundering laws.

The payments system needs to fulfil additional liquidity and capital allocation requirements, due to the associated potential risks.

“The additional requirements would be based on recognised standards for similar activities in the financial markets and would need to reflect the dimension of the project”, the FINMA said.