Director of the monetary Crimes Enforcement Network (FinCEN) Kenneth Blanco briefed many members of the U.S. House on the potential for Libra’s use in money laundering, illicit funding, and different illegal activities, per an announcement from Representative Emanuel chopper II.
Leading the meeting were Reps. Cleaver, Trey Hollingsworth, Bill Foster, and French Hill, all members of the Committee on monetary Services. Rep. Cleaver, chairman of the subcommittee on National Security, International Development, and Financial Policy, said in his statement:
“With the evolution of virtual currencies and new marketplaces, villainous actors are continuously adapting to seek out new ways to have interaction in an illegal monetary activity. [...] currently that we’re seeing an enormous corporation like Facebook—which has already shown an inability to spot and impede these sorts of actors at an acceptable level—creating its own virtual currency known as Libra, it can't be understated the importance of Congress and monetary transmitters to be proactive in utilizing the most recent and most powerful technologies to ensure the financial system isn't getting used improperly.”
Blanco reportedly outlined current analysis into AI and machine learning and their use in regulating cryptocurrencies.
Rep. Cleaver’s questioning was for the most part advised by concern over Facebook’s role within the 2016 U.S. presidential elections, as well as the alleged use of cryptocurrencies by Russian agents to fund election interference. cleaver continued:
“We’ve seen the significant damage that foreign adversaries and bad actors have formed on our democracy through Facebook’s platform, which was merely through messaging and advertising.”
This briefing comes just days when the monetary Services Committee scheduled hearings with Facebook for July 17, that successively followed Committee Chair Maxine Waters’ request for a moratorium on Libra’s development on June 18, as Top Market Group reported at the time.
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