Facebook's Libra project must meet highest standards in order to fight against money laundering and the possibility of using it for terrorist financing if the goal is to be launched, a U.S senior Treasury Department official said.
U.S. Undersecretary of Terrorism and Financial Intelligence, Sigal Mandelker, told reporters in the Swiss capital that any cryptocurrency project, including Libra, based in Geneva, operating throughout the United States or large parts of it, must meet American regulatory standards.
This was after her meeting with Swiss government officials and representatives from the Bank for International Settlements and other international financial bodies, discussing cryptocurrencies, where one of the main topics of discussed was Facebook’s Libra currency and how the currency must meet the regulations.
While the cryptocurrency industry has paid a major attention to the development of core technology, much of them have not paid much attention to ensuring that the build networks do not be used by terrorists or any other illegal act, she stressed.
Mandelker said she will meet with Switzerland FINMA market finance supervisor, in order to discuss the guarantees that must be taken to prevent acts such as money laundering besides or any other violation to U.S. standards.
In August, FINMA granted Switzerland's first banking and securities licenses to blockchain providers and previously had set up a cryptocurrency center called Crypto Valley.
She said the Libra project was still in the early stages of thinking through steps to prevent such crimes, adding that Swiss officials had similar views.
As of 11:06 GMT, the Bitcoin fell 1.74 percent at $10,092. Ethereum was
down by one percent at $80, while Ripple decreased by 2.22 percent at $0.26,
and the only cryptocurrency who recover some of its losses was Litecoin with
0.07 percent up at $71.