US Treasury Will Not Ban Cryptocurrency Mixing Services
Brian Nelson, the Under Secretary for Terrorism and Financial Intelligence at the US Department of the Treasury, clarified that the department is not trying to ban cryptocurrency mixing services.
This comes after FinCEN’s proposal in 2023 to label mixers as a “primary money laundering concern” and require VASPs to report any mixed crypto transactions to the agency.
Some in the industry have interpreted this as a move towards a complete ban on crypto mixing in the US, but the Treasury denies this. Nelson stated that the proposal is aimed at promoting transparency rather than banning mixing.
He also expressed understanding for the desire for financial privacy in the crypto community, but suggested working together with the industry to find ways to enhance privacy without facilitating terrorist financing.
He emphasized the distinction between obfuscation and anonymity-enhancing services, and expressed a willingness to collaborate with the industry to develop tools that can enhance privacy in the context of public blockchains.
