The U.S. Treasury Department has proposed categorizing cryptocurrency mixers as a “primary money laundering concern” in a move that could severely limit their interactions with U.S. firms and users.
Keypoints
- The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed categorizing crypto mixers as a “primary money laundering concern”.
- This would allow imposing restrictions on financial firms’ dealings with mixers, ranging from extra diligence to prohibiting accounts.
- The move aims to combat use of crypto by terrorists and bad actors like Hamas, Palestinian Islamic Jihad, and North Korea.
- FinCEN cites crypto donations to Hamas ahead of recent attacks on Israel as evidence of the problem.
- If finalized after a 90-day comment period, the rule could severely limit mixer interactions with U.S. firms and users.
- Some argue only a small portion of crypto activity involves illegal…
