Ever since the news broke of Facebook’s Libra token there have been a lot of questions about the upcoming digital currency from both potential users as well as government powers with Facebook meeting with lawmakers around the world to both explain their position as well as lobby for support ahead of the launch. One of the biggest questions that have been floating around in this regard is how Facebook will prevent the use of the token for criminal purposes as this is a significant problem within the crypto industry.
Now, it has been reported on September 10, 2019, that Facebook‘s new token will have to comply with requirements in the United States with regards to anti-money laundering practices and this was revealed by United States Treasury Under Secretary of Terrorism and Financial Intelligence Sigal Mandelker.
Playing by the Rules
Mandelker also stated that any cryptocurrency that is released must adhere to local regulations and this includes the Libra token. This is a rather interesting take as regulatory requirements and laws differ from place to place and from region to region and while certain countries such as Malta most likely being accepting of the token, some countries have laws such as in India and China that might not be as conducive.
It is also worth noting that the use of cryptocurrency for money laundering has been a significant challenge as many criminals who are involved in all manner of illegal activities have been able to launder their ill-gotten funds through cryptocurrency mixers and so on. Naturally, it’s a token that will be as widely publicized and used as Libra will likely be a target for these criminals and it is understandable that the US government wants to tackle this problem ahead of time.
Despite all the efforts that have been undertaken by Facebook in this regard, there is still some pushback from regulators about the Libra token with European Central Bank’s key legal official Yves Mersch calling the upcoming token beguiling but treacherous in a recent meeting. However, Facebook is not backing down as they sent a delegation to meet with Swiss lawmakers to quell their fears and have also put together an impressive lobbying team to make sure that Libra is on good terms with all world governments and launch is without a hitch.