US Treasury Secretary responds to Trump's recent criticism of cryptocurrency in a tweet

During a press conference, U.S. Treasury Secretary Steven Mnuchin responded to President Trump's concerns about the use of cryptocurrency to fund illegal activities, emphasizing the importance of implementing anti-money laundering policies in the crypto industry.

Mnuchin claims that cryptocurrencies are being used to fund illegal activities, posing a national security issue, and points out that the total amount involved has reached billions of dollars:

Cryptocurrencies like Bitcoin are being used to support billions of dollars worth of illegal activities, such as cybercrime, tax evasion, ransomware, malware, illicit drugs, and human trafficking, which is indeed a national security issue.

Mnuchin further commented on the role of cryptocurrencies in facilitating financial crimes:

I think to a large extent, these cryptocurrencies have been manipulated by illicit activities and speculation.

Mnuchin also responded to the President's tweets about cryptocurrencies, agreeing and stating:

As the President said, Bitcoin is extremely volatile, its value is based on thin air, meaning it has no physical support, and the Treasury Department places great importance on the U.S. dollar as the world's reserve currency.

As previously reported by ABM, Trump issued a series of anti-crypto and anti-Bitcoin tweets on July 12, claiming that the value of cryptocurrencies is "extremely unstable."

https://twitter.com/realDonaldTrump/status/1149472285905940480

According to Mnuchin, the Treasury Department has emphasized to Facebook and Bitcoin users that crypto financial services are subject to the same anti-money laundering and counter-terrorism financing policies as traditional institutions such as banks.

Furthermore, any crypto industry must comply with the Bank Secrecy Act (BSA) and register with the Financial Crimes Enforcement Network (FinCEN) on FinCEN.

Mnuchin also established the Cryptocurrency Assets Working Group of the Financial Stability Oversight Council (FSOC), which, in addition to FinCEN, includes major regulatory agencies such as the SEC, CFTC, and the Federal Reserve. The group aims to mitigate regulatory risks associated with cryptocurrencies.

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