US Treasury: Facebook’s Libra And Other Crypto’s Must Adhere To AML & Terrorism Financing Standards
The highly anticipated Facebook’s crypto, Libra, must meet stringent US regulatory requirements before it can be launched, says an official from the US treasury.
According to Treasury’s Under Secretary in charge of terrorism as well as financial intelligence, Sigal Mandelker, the Libra stablecoin must achieve the highest standards for fighting money laundering as well as financing of terrorism activities before it can roll on in the US.
In a press statement in Geneva, Switzerland, where Libra Organization is located, Mandelker said that the rules do not only apply to Libra but all the cryptos available in the entire or part of the US. she explained that all the cryptos must meet the standards set to company financial crimes. She said:
“Whether it’s bitcoin, Ethereum, Libra, our message is the same to all of these companies: anti-money laundering and combating the financing of terrorism has to be built into your design from the get-go.”
Mandelker was speaking after meeting Swiss government officials, representatives from Bank for International Settlements as well as various global financial organizations to discuss about cryptos including Libra. The top Treasury official also stated that she was set to meet the Swiss financial regulator, FINMA, before the end of her trip.
Reuters reports that the intended meeting will focus on coming up with anti-money laundering measures and also the actions to be taken in case of non-compliance with the set measures.
Mandelker argued that the crypto industry has highly prioritized in development of infrastructure while little is being done to stop criminals as well as terrorists from utilizing the networks from moving value from one place to the other.
The Treasury official also took note of Switzerland’s crypto friendly environment arguing that nations taking that path must take the concerns seriously and with utmost regard.
Although Swiss central bank has recently stated that it is relaxed about Libra since Facebook has shown willingness to comply with the rules, the country’s privacy overseer has expressed its concerns.
In July the Swiss Federal Data Protection stated that Facebook was yet to respond to its call for more details on the measures put in place to ensure customer data is safe. Similarly, CoinDesk reports Congresswoman Maxine Waters the chair of the House Financial Services Committee, also expressed concerns on the prospect of permitting such a tech behemoth like Facebook to develop a ‘privately controlled alternative global currency.’