According to the US Senate official website, on July 16th, Libra project leader David Marcus published his testimony at the forthcoming Libra hearing, which stated that it is "completely solving" the regulator's Facebook will not launch the Libra project until it is worried and approved.
I hope Switzerland will become Libra's regulator
In addition, Marcus also reiterated his privacy commitment. He said that in addition to the basic transaction information, the Libra Association will not retain the user's personal data, and Facebook will not share information about the Calibra wallet with others in the company.
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He added that Facebook sees Libra as a "payment tool rather than an investment," which can help ease fund transfers and enable interaction. At the same time, Marcus said that the Libra Association cannot profit from blockchain data for advertising and other purposes.
At the same time, since the Libra Association is based in Geneva, he expects Switzerland to become a privacy regulator. It is understood that Switzerland has always been actively open to cryptocurrencies. This also makes Marcus's appeal difficult to understand.
According to a coindesk article, Kristin Smith, head of a blockchain association, said that Facebook’s decision to set up the Libra Association’s headquarters in Switzerland is a lack of in-depth understanding of US regulation.
“The prevailing regulatory uncertainty limits the way American companies and investors further broaden their cryptocurrencies and related technologies. So regardless of the benefits of Swiss law, Facebook is unlikely to do more related business in the US. Development."
But US Senator Sherrod Brown doesn't think so. He said in Twitter: "We can't allow Facebook to run riskier new cryptocurrencies from Swiss bank accounts without supervision."
Regardless of Facebook's intention to set up Libra's headquarters in Switzerland, according to the recent overall attitude of the Libra project in the United States, if you want to successfully implement Libra, Facebook and other members involved in the project need to find another way.
US Treasury Secretary: Using cryptocurrencies to finance illegal activities is a national security issue
Just a few hours before Marcus released his testimony, US Treasury Secretary Steven Mnuchin gave a speech at a press conference on July 15th, commenting on cryptocurrency regulation.
Mnuchin said that using cryptocurrencies to finance illegal activities is a national security issue, and it has cost billions of dollars to solve this problem: "Cryptographic currency such as Bitcoin is used to support billions of dollars in illegal activities, such as cybercrime. Tax evasion, extortion, random software, illegal drugs, human trafficking… This is indeed a national security issue."
Mnuchin further emphasized the important role of cryptocurrency as a means of financing crimes. He said: "I think that to a large extent, these encrypted digital currencies are dominated by illegal activities and speculation."
Two things that happened one after another in a short day seem to indicate that Libra, even the much-anticipated star project, had to bow down when government agencies had raised behaviors related to cryptocurrencies to national security issues.
“Digital financial services are also subject to legal constraints”
In addition, he also responded to Trump’s comments on cryptocurrency on Twitter last Friday:
“As the President said, Bitcoin is very volatile, and Bitcoin is actually air. The Treasury also attaches great importance to the role of the US dollar as the world's reserve currency.”
At the same time, Mnuchin also emphasized the role of FinCEN (Financial Crime Enforcement Network) regulations in cryptocurrency transactions.
“Any crypto transmitter must comply with the Bank Secrecy Act (BSA) and be registered with the Ministry of Finance's Financial Crimes Enforcement Network (finCEN).”
FinCEN is the federal regulator that implements BSA in practice and is an authoritative body for all money service senders, including cryptocurrency projects such as Liba.
According to Mnuchin, the Ministry of Finance has emphasized to Facebook and Bitcoin (BTC) users that digital financial services and traditional institutions such as banks will be treated the same, as well as by anti-money laundering and anti-terrorist financing policies.
Mnuchin also established the Digital Assets Working Group of the Financial Stability Oversight Committee. According to reports, the working group includes major regulators such as the SEC, CFTC and the Federal Reserve. The goal of the joint working group is to mitigate regulatory risks associated with cryptocurrencies.
The Marcus hearing prepared testimony: https://www.banking.senate.gov/imo/media/doc/Marcus%20Testimony%207-16-19.pdf
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