Money Laundering and Reserve Defaults are the Pressing Concerns about CryptocurrencyJuly 5, 2019
Russia has remained calm about Facebook’s cryptocurrency. Facebook has been criticized a lot concerning their cryptocurrency initiative by consumer groups, financial regulators, lawmakers, and economists. Almost all of them are worried that Facebook might interfere with their privacy eventually contributing to financial crimes.
David Marcus clarified a few things concerning Libra. Marcus will be testifying before the US Senate Banking Committee and the House Financial Services Committee over the next few weeks.
The most pressing of the concerns were related to money laundering and reserve defaults. While the major powers have been perturbed, Russia does not seem disturbed in anyway concerning the Libra.
Alexei Moiseev, stated, “No one is going to ban it.” The statement made by the Russian Deputy Finance Minister made it appear like Russia will be treating Libra like a Bitcoin or any other kind of asset type. It is expected for the Russian crypto regulation to come soon; however, the regulation might likely legalize the cryptocurrency trading process. However, Moiseev further added, “The ruble is our national currency, and all calculations must be made in it.”
However, Russia is not the target market for Libra. However, regulators are concerned about potential misuse considering the past use of Bitcoin by the Russian Security Apparatus.
It has been confirmed by intelligence agents in the Russian Military Intelligence Service that Bitcoin has been used in the finance operations which are related to the 2016 e-mail hack concerning the Democratic National Committee.
Alexander Vinnik is suspected to have laundered billions of dollars via BTC-e, the cryptocurrency exchange which is in turn linked to Bitcoin usage. Russia has served as the hot spot for several initial coin offerings. This is considered by many to be one of the fraudulent fundraising method used to solicit cryptocurrency investments.
Libra might not face the volatility of Bitcoin as it is pegged to the USD and Euro. The price certainty and the lack of requirements of identification are considered to be factors attractive to money launderers.
It is going to be very difficult for any government to exert its control over Libra. Anders Aslund at the Atlantic Council stated that both Bitcoin and Libra should be banned across the world due to the probable threat of money laundering.
Katharina Pistor stated, it will be difficult for authorities to infiltrate the network. She was as well concerned about how there is a scarcity of safe assets. She also stated that the Libra is only as good as the asset that it represents.