Echoing the statement released by U.S. President Donald Trump a few days ago, Mnuchin reaffirmed the speculative nature of crypto assets.
Mnuchin cited serious security issues regarding bitcoin and other crypto assets, stating that the use of cryptocurrency to support illicit activity is a “national security issue.”
“Recently, as you know, there has been a great deal of interest about digital assets including cryptocurrencies such as bitcoin and Libra. There are many regulatory and supervisory questions regarding libra, virtual assets, and virtual currencies.”
“Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, exortion, ransomware, illicit drugs, and human trafficking. Many players have attempted to use cryptocurrencies to fund their malignent behavior. This is indeed a national security issue.”
In the near term, the U.S. government and its financial agencies such as FinCEN are expected to tighten their oversight on the cryptocurrency sector.
According to Mnuchin, the Financial Stability Oversight Council’s Working Group on Digital Assets has been established to enable all financial authorities including the SEC, CFTC, and FinCEN to work together to combat risks posed by crypto.
“The United States has been at the forefront of regulating entities that provide cryptocurrency. We will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities.”
“Treasury has been very clear to Facebook,