Recently Fox Business Network reported Mnuchin’s briefing on regulating cryptocurrencies and said that recently people have shown great deal of interest in cryptocurrencies and virtual asset including Bitcoin and Lybra. He raised concerned on the regulation and supervision of Libra but he was quoted saying that he would streamline the briefing on the growing misuse of VC by money launderers and terrorists financiers.
He was also quoted saying that Bitcoin is based on thin air, a comment which hasn’t been taken well amongst the viewers. He was quoted saying that this situation is a national security issue and the treasury shall not allow digital asset service providers to operate in the shadows.
He also stressed on the fact that the role of enforcing FinCEN regulations with respect to crypto-dealing organizations is a must and has to be done. He went on to talk about the International Nature of Cryptocurrencies and said that they won’t stop here in US borders but shall take step to ensure this internationally.
The Secretary’s briefing sounded more like a narrative of US Presidents’ latest Twitter posts on cryptocurrencies specifically targeting Facebook’s latest addition Libra, saying: “Bitcoin is highly volatile and based on thin air’” and “Treasury takes very seriously the role of the U.S. dollar as the world’s reserve currency.”
As reported by various news agencies he also said that any crypto transmitters must comply with the Bank Secrecy Act (BSA) and register with the Financial Crimes Enforcement Network (FinCEN) which is a bureau of the Treasury. FinCEN is the federal regulator that implements the BSA in practice, and has authority over all money service transmitters — including cryptocurrency projects such as Libra. When asked about what happens when companies like Libra comply to the regulatory standards being put forward the Secretary said that “they got to do a lot of work to convince us”.
All said and done, the disappointment in the system is very evident on the social media and maybe the US Government, especially President Trump needs to rebuild the trust in the Financial system of the US Government.