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The US Department of the Treasury has called for a crackdown on crypto mixers as they look to classify them as a “money laundering threat.”
The proposal was issued as the financial crimes unit looks to deter the illicit use of crypto to finance terrorist organizations.
A Sweeping Move
The move by the US Treasury is a stance they have never taken before and could have significant ramifications. The proposal to label crypto mixers as a primary money laundering concern is part of its efforts to combat the use of crypto to finance illicit activities. It highlighted examples of several terrorist organizations that have benefited from anonymous crypto funds, including possibly Hamas. In a press release, the FinCen stated,
“Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a Notice of Proposed Rule Making (NPRM) that identifies international Convertible Virtual Currency Mixing (CVC mixing) as a class of transactions of primary money laundering concern. This NPRM highlights the risks posed by the extensive use of CVC mixing services by a variety of illicit actors throughout the world.”
The Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a notice of proposed rulemaking on Thursday. This will be open to public comments for a period of 90 days. Speaking about the move, Wally Adeyemo, Deputy Secretary of the Treasury, said,
“Today’s action underscores Treasury’s commitment to combatting the exploitation of Convertible Virtual Currency mixing by a broad range of illicit actors, including state-affiliated cyber actors, cyber criminals, and terrorist groups. More broadly, the Treasury Department is aggressively combatting illicit use of all aspects of the CVC ecosystem by terrorist groups.”
Illicit Actors Use Mixing Services
FinCEN has stated that mixing services are used by several illicit actors across the world. These services allow users to conduct transactions anonymously. The agency added that the proposal is critical in the ongoing efforts to boost transparency in the
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Author: Amara Khatri
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