Deputy U.S. Treasury Secretary Addresses Cryptocurrency Mixers Regulations
Deputy U.S. Treasury Secretary for Terrorism and Financial Intelligence Brian Nelson clarified the department’s position on cryptocurrency mixers aimed at increasing the confidentiality of transactions. Last year, the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury, proposed to strengthen reporting requirements for transactions associated with such services.
According to Nelson, the new measures are not aimed at banning cryptocurrency mixers, but rather focus on enhancing transparency in their operations. Financial institutions are now obliged to collect and report information on transactions associated with mixers, including users’ personal data. This is expected to help identify possible violations and enhance overall security.
Earlier, the U.S. Treasury Department referred to cryptocurrency mixers as a national security threat and planned to recognize them as primary platforms for money laundering. Following this directive, the California-based platform Swan Bitcoin announced the blocking of accounts associated with cryptocurrency mixers under pressure from its banking partners.
American cryptocurrency exchange Coinbase criticized FinCEN’s initiative, noting that the new requirements create additional complexities for their operations without addressing existing regulatory issues.
Nelson highlighted that the goal of the new requirements is to ensure that users and cryptocurrency companies do not unintentionally become partners of terrorist organizations or regimes supporting weapon production programs. The main focus of the changes is on enhancing transparency and combating potential risks in the financial sector.
