Global anti-money laundering watchdog, the Financial Action Task Force (FATF) , says it will closely monitor developments surrounding Facebook’s planned Libra cryptocurrency. The Facebook-led Libra project is expected to be launched by June next year.

Regulators and politicians have raised a number of concerns about the proposed cryptocurrency. They range from the risk that Libra could be used to launder money to privacy issues and fears it could upset financial stability.

US regulators said earlier that Libra must meet the highest standards for combating money laundering and terrorism financing if it is to get off the ground.

The Libra project has renewed focus on how cryptocurrencies are regulated, with current rules on the sector varying from country to country.

FATF said illegal use of cryptocurrencies appears to be spreading from money laundering to drug trafficking, but that probably represents only a fraction of the true scale of criminal use.