FinCEN drops crypto mixing proposal as backlash kills rule
FinCEN is withdrawing its proposed rule that would have required financial institutions to report customer and transaction details involving crypto mixing, along with its 2023 finding that international mixing posed a primary money-laundering concern. The proposal’s broad definition covered techniques ranging from pooled funds and single-use wallets to asset swaps and transaction delays. FinCEN cited concerns that the rule could burden institutions and chill legitimate activity. It also confirmed it will take no further action on a separate unhosted-wallet proposal. Existing anti-money-laundering, suspicious-activity reporting, recordkeeping and Funds Travel Rule obligations remain in effect. FinCEN says it will continue monitoring mixing and may pursue further action.
