U.S. Treasury Secretary Mnuchin said that the authorities will be preventing Bitcoin from becoming the equivalent to the Swiss-numbered bank accounts.
According to the report shared by CNBC on July 18, Mnuchin criticized bitcoin and other cryptocurrencies because they are being utilized for illegal purposes. Also said that the department wants to implement strong regulations in the crypto space.
The official declared his own decision to closely track Bitcoin to prevent any illegal activity regardless of the price, ensuring that there are billions of dollars of transactions on bitcoin and other cryptocurrencies that are used for illicit activities.
Mnuchin believes that Cash is not laundered as much as Bitcoin
As Mnuchin stated previously that the Bitcoin’s vulnerability to money laundering is the main reason for the Treasury to govern it strongly. On hearing this, CNBC; host Joe Kernen questioned his point in an interview on “Squawk Box” on July 18.
Several Swiss banks previously offered clients more security via numbered accounts known only to the clients and select bankers. However, providing customers an extra layer of privacy, such type of accounts have been criticized by governments around the globe for helping potentially bad actors avoid government investigation and avoid taxation.
Kernen argued that Bitcoin and other cryptocurrencies liable to be used for illegal activities cannot be the reason for banning them, saying that “cash is laundered all the time.” Mnuchin didn’t step back from this statement and said that “I don’t think that’s accurate at all, that cash is laundered all the time.”
The Secretary said the United States possesses the strongest anti-money laundering (AML) system in the world and also government combats “bad actors in the U.S. dollar every day to protect the U.S. financial system.”
After this interview, Kernen raised Sarcasm about the Mnuchin’s idea that Cash is not laundered all the time, however authorities are fighting against the illicit activities in the system. He tweeted;
“‘the existing system has never been used for illicit activities but we’re going to make sure crypto is isn’t used for illicit activities like the current system.’ Got it.”
Before a few days, Mnuchin voiced issues over Facebook’s proposed cryptocurrency and its illicit use, saying that he is not comfortable with the Libra cryptocurrency, that can be utilized for tax evasion, extortion, illicit drugs, human trafficking, etc.