US Treasury to prevent use of Bitcoin for illegal activity

Treasurer of US Treasury Steven Mnuchin said on Friday that Treasury will work with 20 nations for Bitcoin eradication.  He wants to eliminate Bitcoin from being used “to do bad things.”

Moreover, Mnuchin said they are with the group to ensure Bitcoin wallets do not become the Swiss numbered bank account. (The bank is equivalent to a borderless Swiss bank account).

Nonetheless, Speaking at the Economic Club of Washington, he added that the Financial Stability Oversight Council has formed a working group that focuses on cryptocurrencies.

“In the United States — and people may not realize this — under our laws. If you have a wallet to own bitcoins, the company will have obligation as a  bank to Know Your Customer,”. “So, in the United States, we have rules for anti-money-laundering, for all different types of entities, we can track those types of [transactions]. The rest of the world doesn’t have that.”

Risk followed by speculations

He said the treasury was concerned about high levels of speculation in the Bitcoin markets and was out to make sure consumers understood the risks.

“I am concerned that consumers may get hurt,” he said.

He also added that Federal Reserve is unlikely to develop a digital version of its fiat money. This is because they do not think that there is a need for it at this point.

He alluded to the taxing of cryptocurrencies now that the total market cap was $700 billion but said the authorities have no intention of cracking down on Bitcoin or other cryptocurrencies.

Furthermore, he is not worried that Russia could use cryptocurrencies to help banks avoid sanctions. An adviser of Russian president was reported as he said that sanctions against the country will create a need for digital currencies.

“This idea that Russia or Venezuela can thwart the pressure from sanctions just by developing their own cryptocurrency is silly,” lawyer Erich Ferrari of Ferrari & Associates told Bloomberg. “It’s like trying to do it by using cash. Yes, you can do it more easily with cash, but it doesn’t mean you’re evading. It’s harder to get caught.”

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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