The financial regulator Financial Crimes Enforcement Network (FinCEN) has released a new report in which it stated that all the social networking and messaging platforms that are currently focused on creating their own cryptocurrency assets cannot ignore the fact that their products can contribute to illegal transactions.
The regulator’s statement takes place in relation to the fact that Facebook, which is developing its own cryptocurrency product, has lost almost all of its partners, including Mastercard.
"Social media and messaging platforms and others now focusing on the establishment of cryptocurrencies cannot turn a blind eye to illicit transactions that they may be fostering," the regulator said.
Recently the Chief Executive Officer of Mastercard Ajay Banga even explained why the American multinational financial services corporation decided to quit the Libra Association.
However, Facebook is not the only one who appeared to be in the center of criticism. For example, Telegram's Gram crypto-project also lends itself to continuous criticism from another financial regulator — the U.S. Securities and Exchange Commission (SEC). Approximately six investors of the Telegram Open Network (TON) have even filed a petition with the U.S. District Court for the Southern District of New York State to keep their anonymity during the court battle between Telegram and the SEC.
Earlier iHodl reported that the Swiss Financial Market Supervisory Authority FINMA tightened regulation of cryptocurrency-related operations by lowering the threshold value for exchange transactions in cryptocurrencies.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.