The U.S. Secretary of State, Michael Pompeo, said the regulation of cryptocurrencies should be done in the same way as it is done with the financial institutions.
In an interview with the Squawk Box of CNBC, Pompeo was asked about how to better regulate Libra, the stablecoin of Facebook. “We should use the same structure that we use to regulate all other electronic financial transactions today. Because that’s what they basically are. They are funds moving through markets or, in some cases, non-intermediated transactions”.
According to him, the same rules that apply to transactions flowing through SWIFT or those carried out through financial institutions should apply to these transactions. Pompeo states, however, that this process will not be simple. “I admit it will be hard to do”.
Cryptocurrencies regulation to ensure security
During the discussion that covered a variety of topics, from Hong Kong protests to state propaganda using Twitter and Facebook, Trump’s consultant also drew attention to the need to create mechanisms in order to prevent the use of these assets to finance terrorism and money laundering.
“Being able to track money flows all over the world has helped to keep the world safe. Besides, it also helps combating terrorism and other terrifying activities. We need to preserve a financial system, a global financial system, so that we can protect it”, Pompeo said.