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FinCEN Proposes New Rules Targeting Crypto Mixers

Regulation | Oct 25, 2023

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The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a new regulation targeting Convertible Virtual Currency Mixing (CVC mixing).

FinCEN has announced a Notice of Proposed Rule Making (NPRM), identifying international CVC mixing as a primary concern in money laundering activities. This proposal aims to increase transparency around CVC mixing, preventing its misuse by malicious entities such as Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK).  The proposal is available for viewing in the federal register here.

In May 2022, the US Treasury of Foreign Assets Control designated crypto mixer as a Specially Designated National ("SDN"), marking the first time a virtual currency mixer had been sanctioned.

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Andrea Gacki, FinCEN Director:

CVC mixing offers a critical service that allows players in the ransomware ecosystem, rogue state actors, and other criminals to fund their unlawful activities and obfuscate the flow of ill-gotten gains.  This is FinCEN’s first ever use of the Section 311 authority to target a class of transactions of primary money laundering concern, and, just as with our efforts in the traditional financial system, Treasury will work to identify and root out the illicit use and abuse of the CVC ecosystem.

The proposed rule aims to deny illicit actors access to the U.S. and global financial systems by increasing transparency and reporting requirements for financial institutions.

The NPRM is currently available for public viewing, and written comments can be submitted within 90 days of its publication in the Federal Register.


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By targeting CVC mixing, the Treasury aims to combat the illicit use of virtual currencies by various actors, safeguarding the integrity of the financial system. This initiative reflects the government’s proactive approach to adapting to the evolving landscape of virtual currencies and ensuring that innovation does not compromise security.

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