【Old Leek Watch】 #FinCEN
Another important change has emerged in U.S. crypto regulation.
FinCEN, under the U.S. Treasury Department, today withdrew its 2023 proposal to regulate international crypto mixers.
The original proposal considered designating international mixing activity as a “primary money laundering concern” and requiring relevant financial institutions to report mixing transactions, including wallet addresses, transaction hashes, and even IP addresses.
But the reason for the withdrawal is straightforward:
Regulators were concerned that the definition was too broad, could affect legitimate activity, and would impose a substantial compliance burden on financial institutions.
This doesn’t mean the U.S. is abandoning regulation.
But it does show at least one thing:
The U.S. is now starting to distinguish between “cracking down on illicit funds” and “not regulating legitimate crypto activity into oblivion.”
For the crypto industry as a whole, this is a somewhat positive regulatory signal.$BTC $ETH
Another important change has emerged in U.S. crypto regulation.
FinCEN, under the U.S. Treasury Department, today withdrew its 2023 proposal to regulate international crypto mixers.
The original proposal considered designating international mixing activity as a “primary money laundering concern” and requiring relevant financial institutions to report mixing transactions, including wallet addresses, transaction hashes, and even IP addresses.
But the reason for the withdrawal is straightforward:
Regulators were concerned that the definition was too broad, could affect legitimate activity, and would impose a substantial compliance burden on financial institutions.
This doesn’t mean the U.S. is abandoning regulation.
But it does show at least one thing:
The U.S. is now starting to distinguish between “cracking down on illicit funds” and “not regulating legitimate crypto activity into oblivion.”
For the crypto industry as a whole, this is a somewhat positive regulatory signal.$BTC $ETH
