$BTC Privacy tools for cryptocurrencies like mixing services and self-custody wallets are getting a reprieve in the U.S.: FinCEN, under the Treasury Department, has withdrawn its earlier proposals targeting mixers and self-custody wallets.
Bitcoin was the first cryptocurrency. Its supply is capped, and you can hold your own private keys and transfer funds directly without keeping them on an exchange.
The proposal on mixers would have classified international mixing transactions as a key money-laundering risk, requiring banks and similar institutions to keep additional records and file reports when they encountered them.
The announcement was blunt: the definition of mixing was too broad and could scare off legitimate privacy uses, while the reporting burden was too heavy. FinCEN also said it would continue monitoring whether mixers are being used for money laundering.
The proposal on self-custody wallets would have required banks and money services businesses to report and verify customers’ identities when they transacted more than $10,000 with a self-custody wallet. That proposal has been withdrawn outright, and FinCEN says it will not move forward with it.
The withdrawal notice is scheduled to be officially published in the Federal Register today, Beijing time.
Bitcoin was the first cryptocurrency. Its supply is capped, and you can hold your own private keys and transfer funds directly without keeping them on an exchange.
The proposal on mixers would have classified international mixing transactions as a key money-laundering risk, requiring banks and similar institutions to keep additional records and file reports when they encountered them.
The announcement was blunt: the definition of mixing was too broad and could scare off legitimate privacy uses, while the reporting burden was too heavy. FinCEN also said it would continue monitoring whether mixers are being used for money laundering.
The proposal on self-custody wallets would have required banks and money services businesses to report and verify customers’ identities when they transacted more than $10,000 with a self-custody wallet. That proposal has been withdrawn outright, and FinCEN says it will not move forward with it.
The withdrawal notice is scheduled to be officially published in the Federal Register today, Beijing time.