US Treasury Secretary shares Trump's concerns with crypto and insists on compliance



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US Treasury Secretary Steven Mnuchin shares President Donald Trump's concerns about the use of cryptocurrency to fund illegal activities, and highlights the role that FinCEN regulation needs to play in relation to organizations crypto-treatment. Mnuchin made his remarks at a press conference on July 15th.

Mnuchin called the use of cryptocurrencies to fund illicit national security problem activities, claiming that billions of dollars had been used for this purpose:

"Cryptocurrencies such as Bitcoin have been exploited to support billions of dollars of illegal activities, such as cybercrime, tax evasion, extortion, random software, illicit drugs , the traffic of human beings … It is a good problem of national security. "

In response to a question from the press, Mnuchin also commented on the apparent role of crypto as a means of financing crime, stating:

"I think to a large extent these crypto-currencies have been dominated by illicit activities and speculation."

Secretary Mnuchin also echoed the presidents' latest publications on crypto-currencies on Twitter: "As the president has stated:" Bitcoin is extremely volatile and based on narrow bases "" and "The Treasury takes very seriously the role of the US dollar as a global currency reserve. "

As previously reported by Cointelegraph, President Trump tweeted a series of anti-crypto and anti-Bitcoin remarks on July 12, following his "Social Media Summit" for conservative personalities. Trump pointed out that the value of crypto is "very volatile and based on thin air" and that it can "facilitate illegal behavior".

According to Mr. Mnuchin, the Treasury stressed – especially from users of Facebook and Bitcoin (BTC) – that digital financial services were bound by the same policies against money laundering and terrorist financing that traditional institutions such as banks.

In addition, he stated that all encryption transmitters must comply with the Banking Secrecy Act and register with the Financial Crime Enforcement Network (FinCEN): a Treasury office. FinCEN is the federal regulator that implements the BSA in practice and has authority over all issuers of money services, including cryptocurrency projects such as Libra.

Mnuchin also set up the Financial Stability Board's Digital Assets Task Force, which would include key regulators such as SEC, CFTC and Fed, in addition to FinCEN. The idea of ​​this group is to mitigate the supposed regulatory risks associated with cryptocurrencies.

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