Now that US Congress has finished its hearings on LibraCoin Facebook, Treasury secretary Steven Mnuchin has set and presented new regulatory objectives for Bitcoin.
It seems that the consequences of the Congressional hearings on LibraCoin Facebook can now be the genesis of future regulatory problems for the entire US cryptocurrency market. On Thursday, Treasury secretary Steven Mnuchin promised that the United States would oversee cryptocurrencies with “very, very strong” regulations.
“We will ensure that Bitcoin does not become equivalent to bank accounts with Swiss numbers”
The market needs more transparency?
Steven MnuchinAccording to Mnuchin, rigorous regulations will ensure that cryptocurrency transactions remain transparent and prevent the creation of a kind of parallel banking, which is now facilitated eg by the Swiss system. Mnuchin told CNBC :
“I want to be sure that everyone who uses Bitcoin, regardless of its price, uses it for the right purposes, not for illegal activities.”
Mnuchin also said that “transactions worth $ billions of dollars are made using Bitcoins and other cryptocurrencies.” In his opinion, they mainly concern criminal activities.
Mnuchin’s fears are somewhat understandable. There are many known situations in which Swiss banks offered their clients banking services that helped them hide their money transfers. All by providing the market with numbered, coded bills, which are known only to the account holder and a small circle of bankers.
US Treasury secretary fears BTC
Mnuchin on Monday during a press conference also said:
“Cryptocurrencies, such as Bitcoin, have been used to service billions of dollars [in] illegal activities such as cybercrime, tax fraud, extortion, ransom, illegal drugs and human trafficking.”
Cryptocurrencies have become the focus of attention in the US this week because Congress has been questioning Facebook experts who have been working on LibraCoin in recent days.
Is the crypto marketplace in the US in danger? We wrote about such a risk here.