In Libra-land, the speed bumps, hurdles and possibly even roadblocks continue to spring up. In reference to the regulatory climate, don’t expect it to ease anytime soon. Cryptocurrencies, Facebook’s Libra included, face at least some new headwinds as they target a mainstream embrace.
In remarks to reporters this past week in Geneva, Switzerland, US Treasury official Sigal Mandelker, who serves as undersecretary of the Treasury for Terrorism and Financial Intelligence, said cryptocurrencies that operate anywhere in the United States will have to comply with regulations that target fraud.
“Whether it’s bitcoin, Ethereum, Libra, our message is the same to all of these companies: anti-money laundering and combating the financing of terrorism has to be built into your design from the get-go,” she said. The official said she was planning to meet with the Swiss financial regulator, FINMA, this week, in discussions that—according to Coindesk—would focus on anti-money laundering (AML) efforts.
As she told reporters, digital asset companies have spent relatively more time on technology and infrastructure, and there has not been enough focus on AML efforts.
Switzerland may be a focal point for Libra, as in past months the data protection authority there has said that Facebook had not responded to requests for details on how Libra would have features that would battle such fraud.
Switzerland may also offer a litmus test in just how the digital currency may b
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