FinCEN drops proposed crypto mixing rules

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The US Financial Crimes Enforcement Network (FinCEN) has withdrawn its 2023 proposal targeting crypto mixing, saying it could have a “chilling effect on legitimate activity”.

The proposal would have required financial institutions to report detailed information on crypto mixing transactions, including wallet addresses and transaction hashes.

FinCEN also withdrew a 2020 proposal covering identity checks for users of self-hosted wallets. Neither proposal had been finalised, so the withdrawals do not change existing requirements.