A U.S. Treasury official has drawn a strict line for Facebook’s regulatory compliance if it wants to launch the digital currency libra.
Strict Regulatory Compliance for Libra
Speaking in Geneva, Switzerland, undersecretary of the Treasury Sigal Mandelker said that libra and all other cryptocurrencies operating in the U.S. will be required to comply with the highest standard of regulation to combat money laundering and terrorism funding.
According to the report by Reuters, Mandelker 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.
The senior Treasury official was in Geneva alongside members of the Swiss government and Bank for International Settlements to discuss libra and the impact of digital currencies. While Mandelker praised the technological innovation of digital currencies, she criticized companies for ignoring the potential for illicit behavior and exploitation on their networks.
Mandelker plans to meets with the Swiss financial market supervisor FINMA on Sept. 10 to reiterate the priority of anti-money laundering safeguards and the importance of regulatory compliance, particularly for Facebook’s libra which is being based out of Switzerland.
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