Following the President’s Tramp tweet line, at a press conference on Monday, US Secretary of Treasury, Steven Mnuchin, voiced a general concern about Facebook’s Libra and the cryptocurrency development in general, starting with Bitcoin.
Facebook faces its latest crisis and a wave of criticism. Secretary of Treasury Steven Mnuchin seems to have joined the side of politicians who used new cryptocurrency to highlight all the obstacles that Facebook must overcome ever to make a sign of reality.
At the briefing for reporters in the White House, Mnuchin said that the cryptocurrency moves the issue of national security. He said that the potential for money laundering and other illegal activities is just too high and promised that the Treasury would break off legal offenders if they found them.
“We will not allow digital asset providers to work in the shadows.” said the first man of the Treasury.
FinCEN is a network that will examine Libra and Bitcoin. Bitcoin cut the previous decline after Mnuchin’s comments and fell by 9.6% to $ 10,765.78 at 2:42 pm p.m. In New York.
Steven Mnuchin is not the first critic among the US officials
This is not the first time that Libra and the cryptocurrency are being criticized. The opposition of both, Republicans and Democrats could put new pressure on Facebook – already under the awaken eye of Washington for data privacy scandals – to assess whether it is cryptocurrency is paying off. Let’s face it, President Donald Trump made several announcements on Facebook Libra via Twitter a few days ago, giving a clear direction that he is quite skeptical of Bitcoin and believes that cryptocurrencies are often misused for financing terrorism and illegal actions.
Even in the last period, it was asked from Facebook to suspend the development of the stablecoin project.
Furthermore, apart from Steven Mnuchin, Federal Reserve Chairman Jerome Powell has shared his serious concern over this sign and casts doubt on Facebook’s timeline for its launch by next year.
The US financial system should be protected from frauds
In his speech, Steven Mnuchin said that the Treasury Financial Crime Network would maintain any entity that performs transactions in Bitcoin, Libra, or any other crypto to its highest standards. He believes that Bitcoin carries a risk of unstable and speculative nature and that the US financial system needs to be protected from all possible frauds.
Mnuchin said that at a summit of the Group of Seven in France this week, the issue will be discussed with finance ministers from other significant world economies. He also talked about that issue “extensively” with Powell and referred to the Financial Action Task Force (FATF), which issued an instruction to its member governments on how to regulate cryptocurrency service providers last month. In particular, the FATF guidelines recommend the implementation of the so-called “travel policy,” which requires exchanges and wallet providers to keep information about known clients on both sides of each transaction.
A model for harmonization with law
The Ministry of Finance, in which Mnuchin is in charge, offered guidelines on how the crypto administrators can align their business with the law and how he attempted to “export” their policies through the FATF.
The Treasury secretary’s speech focused on two things: offering clear guidelines on how watchers must comply with the BSA as money launderers and export these policies abroad through FATF.
As long as Facebook can keep the level of required rigorous standards of money laundering, there should not be a problem with the launch of the Libra, but Mnuchin is, naturally “uncomfortable” with launching Libra.
Asked about bitcoin and other cryptocurrencies in general, Steven Mnuchin said he did not know and would not speculate with the information on how or why the price of the most famous cryptocurrency in the world could be traded at the current levels. To recall, the value of Bitcoin has increased by more than 4% in only 45 minutes from the beginning of the conference.