US Treasury Secretary Steven Mnuchin at the press conference on cryptocurrency on July 15th, for Facebook encryption scheme, national security, digital currency financial regulation, Venezuelan oil coin, G20 digital currency discussion, etc. The questions were answered sharply.
US Treasury Secretary Steven Mnuchin compared the encryption issue to “national security issues” at a press conference on cryptocurrency on July 15th, emphasizing that the government’s “number one mission” is to fight bad actors. Use encryption for malicious activities. Cryptographic currencies such as Bitcoin are speculative and used for billions of dollars in illegal activities, which is indeed a national security issue. Treasury agencies will also require cryptocurrencies such as Libra to comply with the highest anti-money laundering regulatory standards.
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At the press conference, Steven Mnuchin responded sharply to twelve questions including Facebook encryption plan, national security, digital currency financial supervision, Venezuelan oil coins, and G20 digital currency discussion.
The speech and question and answer of Stephen Mnuchin are as follows:
Stephen Mnuchin: Hello everyone, thank you very much for coming. Recently, many people have a lot of interest in digital assets, including bitcoin and Libra's cryptocurrency. There are many questions about the regulation and supervision of Libra's virtual assets and virtual currency, but we (the Ministry of Finance) are mainly concerned about the abuse of virtual currency by money launderers, financial terrorists and other bad guys. Also this week, Facebook's Calibra project representative will travel to Capitol Hill to discuss the issue of cryptocurrency Libra. In the US government and the international financial community, there have recently been a large number of activities related to the regulation and processing of digital assets in cryptocurrencies. Many people are very interested in digital currency. This time I will give some brief explanatory comments on what the Ministry of Finance has done in this regard, and then let everyone ask questions.
Last month, the Libra Association, a group of 28 companies including Facebook, announced that it is developing a cryptocurrency called Libra. The Treasury is concerned that Libra may be abused by money launderers and financial terrorists. And cryptocurrencies like Bitcoin are also used to support billions of dollars in illegal activities, such as cybercrime, tax evasion, extortion, ransomware, illegal drugs, human trafficking, etc. Many criminals try to use cryptocurrencies to finance them. The evil deeds.
This is indeed a national security issue. The United States has been at the forefront of regulating the provision of cryptocurrency services, and we will not allow digital asset service providers to operate in the shadows or to use cryptocurrencies to support illegal activities.
The Treasury is already very aware of Facebook, Bitcoin users and other digital financial service providers who must implement the same anti-money laundering and anti-terrorist financing (AML and CFT) regulatory rules as a safeguard against traditional financial institutions. Remitters of cryptocurrencies must comply with the relevant Bank Secrecy Act (BSA) obligations and register with the Financial Crimes Enforcement Network (FinCEN).
Many people are unfamiliar with the Financial Crimes Enforcement Network, a subordinate bureau of the US Treasury that is responsible for protecting financial systems from illegal use, combating money laundering and promoting national security by disseminating financial intelligence. In the past year alone, the Financial Crimes Enforcement Network has collected more than 20 million copies of the Bank Secrecy Act, which has collected more than 300 million reports over the past 11 years. The Financial Crimes Enforcement Network implements supervision based on the Bank Secrecy Act and has federal regulatory, supervisory and enforcement authority over money services and banks. The rules governing money service providers apply equally to physical and electronic transactions. As a money service business, cryptocurrency senders need to undergo compliance checks like other US banks. It is important to be clear that the Bank Secrecy Act will regulate the holding of any entity that trades in Bitcoin, Lirbra or any other cryptocurrency to the highest standards.
The Ministry of Finance attaches great importance to the role of the US dollar as the world's reserve currency, and we will continue to work hard to protect our country and protect the US and the global financial system. Since these issues are very interesting, I will answer some questions:
Question 1 (1): Federal Reserve Jay Powell said last week that the US Financial Stability Regulatory Commission will hold a meeting to discuss Facebook's Libra products. Has the meeting been conducted? You mentioned this product launched by Facebook. If Facebook can finally solve all your concerns about AML and other issues, then do you want Facebook to engage in cryptocurrency distribution?
Stephen Mnuchin: I will answer the first question first. We will hold ministerial meetings or deputy ministerial meetings for discussion. At present, it has held many meetings with a number of regulatory agencies and Facebook representatives, and has also held several meetings with the US Financial Stability Regulatory Commission working group. Jay Powell and I meet every week, and we have discussed this issue extensively, so these discussions are still going on.
In a way, Facebook can do this correctly and use the right AML payment system correctly. This is a good thing, but they still have a lot of work to do to convince us.
Question 1 (2): Facebook has encountered privacy issues in the past. How does this affect your attention and how much do you care about Facebook with Libra?
Stephen Mnuchin : Again, I just said that we have concerns about privacy issues. There is a question about potential liquidation in the media. I don't intend to comment on it, but obviously the regulator and one of the regulators, as I said, most people have never heard of FinCEN, so one of the reasons I want to explain is Whether there are banks or whatever they are non-banks, they are all in the same regulatory environment. So before entering the US financial system, we must convince us and achieve high standards, otherwise we will pursue their responsibilities.
Question 2: At last week's social media summit, President Trump accused social media of hostility to conservatives. Can you assure the market and everyone that any action the government will take is not because the president thinks these social media giants are biased against him?
Stephen Mnuchin : Can I repeat that? What I will tell you is that President Trump does pay attention to Bitcoin and cryptocurrencies, which are our long-standing legitimate concerns. But what I want to emphasize is that we don't target any entity, and everyone plays the same rules. Similarly, whether you are walking into a money service provider or walking into a bank, or if you are trading digitally, you must follow the same rules.
Question 3: Considering that Bitcoin is decentralized, do you have any advice for Americans planning to invest in Bitcoin and other cryptocurrencies?
Stephen Mnuchin: Ok, I want to tell them to be careful. First of all, you should be clear about why you want to invest in Bitcoin and other cryptocurrencies. There are still many good things worth investing in. Obviously we know this too. But you know that the most important issue now is not wanting criminals to use cryptocurrencies. This is the number one problem we face, and I believe that cryptocurrencies have been largely dominated by illegal activities and speculation. We will ensure that the public and investors know what they are investing in, whether they are SEC or other regulators, and have appropriate disclosures.
Question 4 (1): If they execute the cryptocurrency in the right way, are you satisfied with Facebook's launch of cryptocurrency?
Stephen Mnuchin: I didn't say that I was satisfied with their launch of the currency.
Question 4 (2): If they publish cryptocurrencies in an appropriate and secure manner?
Stephen Mnuchin: But now I don't feel right. Therefore, we still need to be cautious. I mean, there is still a long way to go before we feel appropriate and safe.
Question 4 (3): But Facebook already has a currency schedule – is Facebook honest with the government? How many years does it take for them to regain trust?
Stephen Mnuchin: I think their attitude towards the government is very frank. I don't intend to publicly predict how long I think Facebook will take to reach our satisfaction with it, but they still have a long way to go. go. Moreover, part of the reason is that the public is interested in cryptocurrencies, which is why I want to provide assurance to the public. But before Facebook or anyone else is ready to issue coins, we will ensure that the financial system is protected. As I said, for those who use cryptocurrencies for illegal purposes, we will fight against many unfair activities.
Question 5: Thank you Minister. Can you introduce the discussion and discussions with other G20 countries in specific areas of cryptocurrency?
Stephen Mnuchin: We have a great deal of consensus in this regard. As I said, in Orlando two weeks ago, the United States just stepped down as the chair of the Financial Action Task Force on Money Laundering (FATF). I gave a keynote speech there and was adopted. The Financial Action Task Force on Money Laundering is the world's largest regulatory organization, larger than the G20, and sets the gold standard for anti-money laundering (AML). These rules have also been adopted. In G7 and G20, we have reached a general agreement: in the United States, if you deal with the US financial system, you must follow the same rules. This is also a matter of great concern to other members of the G20.
Question 6: So you said that the Treasury is concerned about bad actors who use cryptocurrencies. For example, Bitcoin seems to be very popular among white nationalist groups. What measures has the Treasury taken to prevent these bad actors from using these decentralized cryptocurrencies?
Stephen Mnuchin: This is not related to any particular group. I will not comment on any particular group, but I will tell you that the US Financial Crimes Enforcement Network (FinCEN) is conducting a number of investigations and has There are enforcement actions, and there will be more enforcement actions in the future. We will strengthen supervision and supervision of resources. This is our absolute concern.
Question 7: Do you seek specific agreements at the G7 Finance Ministers' Meeting, are you confident that you will get a statement in favor of the United States?
Stephen Mnuchin: Again, my understanding is that there will usually be a presidential report, but there will be no communiqué. This time the work is handled in France, we have working groups in G7 and G20, which has been explained in the G20 notice. We are very interested in taxing cryptocurrencies. Focusing on international tax issues will definitely help us in our discussions.
Question 8 (1): As early as March, the Ministry of Finance imposed restrictions and sanctions on Venezuela's cryptocurrency "Petro". Our understanding is that the Venezuelan regime is still trying to maintain its functioning. Can you tell us what responses you have received from these restrictions and whether you know the latest status of Venezuelan coins?
Stephen Mnuchin: I don't currently know who actually uses it, or whether it has been cancelled, or whether it has really achieved any success.
Question 8 (2): Is the restriction valid?
Stephen Mnuchin: Of course.
Question 9: Have you not been worried about the one-size-fits-all regulatory approach? Some cryptocurrency regulators have been run by the US Commodity Futures Commission (CFTC), who have been working with the International Monetary Fund and the European Central Bank, and each regulator has completed the work within the rules. Not only that, but there is now Calibra, so you seem to want to manage them all across the board?
Steven Mnuchin: No, I don't think we are doing this. In fact, one of the reasons I want to talk about this issue is that since last year, there have been many activities on the issue of cryptocurrency regulation. And you know, Libra has attracted a lot of attention, whether it's Congress, the media, or other areas, but people are not aware of other ongoing work, so that's why you have the illusion of a one-size-fits-all approach.
Question 10: I want to know if you can specify the illegal behavior just mentioned. Can you give some examples to let Americans know what they should avoid when they enter the cryptocurrency field?
Stephen Mnuchin: Again, if you deal with legal entities in the United States, those legitimate entities associated with encryption do need to comply with the "KYC" (know your customer) and "anti-money laundering" rules. If you are looking to use Bitcoin to access these entities and enter a dark network transaction, and feel that you will not be caught, then you are wrong, you will be caught.
So this is a warning, don't be lucky. Don't use cryptocurrencies to participate in illegal activities, because we will put all the efforts of the US Treasury and regulators into practice.
Question 11: Is the new regulation beneficial to traditional banks, perhaps in the same way?
Steven Mnuchin : We intend to create a level playing field, whether you are a currency, or you are a bank, or you are an online operator, or PayPal. This is a level playing field. We have been encouraging financial innovation, and there are many innovations that have also overturned the traditional bank's electronic payment system. Many people are using the US dollar electronic payment system efficiently. You know that we will continue to support these activities and hope that technology will continue to evolve.
Question 12: Do you think the rise in the value of Bitcoin is caused by fraud? Is there evidence?
Stephen Mnuchin: I am not going to speculate. I don't know why Bitcoin trades and I don't know where Bitcoin trades. I am not commenting on whether the price of bitcoin is high or low. I am talking about the regulatory environment here and warn people not to use illegal means. (chain got)