US Treasury Calls for Crackdown on Crypto Mixers
The US Department of the Treasury is taking a new stance in an effort to combat the use of cryptocurrencies for illicit activities. They have proposed classifying crypto mixers as a “money laundering threat” and are seeking public comments on the matter. The move comes as the Treasury aims to deter the financing of terrorist organizations through anonymous crypto funds.
A Sweeping Move
This proposal marks a significant shift in the Treasury’s approach and could have far-reaching consequences. The aim is to label crypto mixers as a primary concern for money laundering, citing examples of terrorist organizations that have benefited from these services. FinCEN, the Treasury’s financial crimes unit, stated that extensive use of crypto mixing services by illicit actors poses significant risks.
Illicit Actors Use Mixing Services
Mixing services are utilized by various illicit actors globally to conduct anonymous transactions, according to FinCEN. The proposal seeks to increase transparency in the crypto space and address concerns about illegal activities and terrorism financing. This move is part of the broader efforts by the Biden administration and the Treasury Department to combat illicit use of cryptocurrencies.
Restrictions On Dealing With Mixers
If the designation is approved, the Treasury Department will be able to impose restrictions on US financial firms’ dealings with crypto mixers. These restrictions may include additional due diligence requirements and heightened scrutiny of specific account transactions among US financial institutions. The goal is to prevent these firms from opening or maintaining accounts related to crypto mixers.
Hot Take: US Treasury Aims to Combat Money Laundering in Crypto Space
The US Department of the Treasury has taken a bold step in its fight against money laundering through cryptocurrencies. By proposing to classify crypto mixers as a significant money laundering concern, the Treasury aims to address the illicit use of cryptocurrencies by terrorist organizations and other criminal actors. This move underscores the government’s commitment to transparency and accountability in the crypto space. The proposal is open for public comments for 90 days, after which the agency will review the input before finalizing the rule. With this action, the Treasury Department is sending a clear message that it will not tolerate the abuse of cryptocurrencies for illegal activities.
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