Swiss-based Libra will have to meet tough US standards, says US Treasury – Business

The Libra cryptocurrency project led by Facebook must meet the highest standards to combat money laundering and terrorist financing to take off, a senior US Treasury official said on Tuesday.

Any cryptocurrency project, including Geneva-based Libra, that operates in all or important parts of the United States will clearly have to comply with US regulatory standards. UU., Said the undersecretary of terrorism and financial intelligence of the USA. UU., Sigal Mandelker, to journalists in the Swiss capital.

"Whether it's Bitcoin, Ethereum, Libra, our message is the same for all these companies: money laundering and the fight against terrorist financing must be integrated into their design from the beginning," said Mandelker.

She spoke after meeting with Swiss government officials and representatives of the Bank for International Settlements and other international financial organizations to discuss cryptocurrencies, including the planned Libra project, which will be launched by a Swiss-based association.

While the digital currency industry has paid great attention to the development of the underlying technology, much of the industry has paid very little attention to ensure that the networks they are building do not allow terrorists and other bad actors to hide and move money said Mandelker.

The Treasury official said she would meet with the Swiss financial market supervisor FINMA on Tuesday, where it would be a priority to discuss not only the application of adequate safeguards against money laundering, but also take enforcement measures against companies that They break those rules.

In August, FINMA granted the first bank and securities licenses in Switzerland to two blockchain service providers and created a digital currency center called "Crypto Valley".

"Switzerland, like many other countries, has promoted itself as a center for financial technology and innovation, and, of course, any country that is promoted in that way, in my opinion, it is up to that country to take these concerns individuals at the highest level in (a) the highest consideration, "he added.

The Libra project was still in the early stages of thinking about the steps to prevent such crimes, he said, adding that Swiss officials had similar views.

"The Libra Association argues that financial inclusion, regulatory compliance and consumer protection are not competing objectives," said Dante Disparte, a spokesman for Libra.

He added that the association thanked the public policy dialogue and the multi-stakeholder process.

Digital currencies such as Libra raise serious concerns and should be regulated as strictly as possible to ensure that they do not alter the global financial system, finance ministers and central bankers of the Group of Seven said in July.

Source: https://www.dawn.com/news/1504584/swiss-based-libra-will-have-to-meet-tough-us-standards-says-us-treasury

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