FinCEN Withdraws Proposed Crypto Rules on Wallets and Mixers
- The U.S. Treasury’s FinCEN is withdrawing two proposed crypto rules from December 2020 and October 2023.
- The withdrawn rules targeted self-custody transfers over $3,000, requiring enhanced recordkeeping and identity verification.
- A separate proposal aimed at crypto mixers was also withdrawn, which would have imposed strict reporting requirements under the USA PATRIOT Act.
- Critics argued these rules could chill legitimate activity by treating privacy measures as suspicious.
FinCEN’s decision to withdraw these proposals reflects a shift in Washington’s stance towards digital asset privacy, acknowledging concerns about overregulation of lawful activities involving wallets and mixers.
This withdrawal removes potential compliance burdens on self-custody and privacy tools, though existing anti-money-laundering obligations remain in place for financial institutions. (Source)
