US Treasury Department Proposes Punishing Cryptocurrency Mixers

The US Treasury Department has just proposed a new classification for cryptocurrency mixing platforms, aimed at countering cryptocurrency-funded terrorist gangs.

US Treasury Department Proposes Punishing Cryptocurrency Mixers. Photo: Blockworks

U.S. officials are operating to punish foreign cryptocurrency mixers as a revenue laundering risk, continuing a fatal blow in the battle towards on the net monetary crime.

The Financial Crimes Enforcement Network (FinCEN), an company of the U.S. Department of the Treasury, has proposed labeling cryptocurrency mixers (typically utilised to hide traces of money and transactions) as “major money laundering concerns.” FinCEN will be open for public comment for 90 days. The company will then cautiously critique it prior to issuing a last rule.

If the proposal passes, the Treasury Department would have the energy to impose restrictions on U.S. businesses dealing with mixers, from requiring due diligence to a ban on opening or preserving representative bodily accounts…

Today’s action highlights the U.S. Department of the Treasury’s dedication to stopping unlawful conduct by lousy actors, which includes state-linked criminal groups, cybercriminals, and terrorists. Deputy Finance Minister Wally Adeyemo also cited the situations of Tornado Cash and Blender.io as examples.

FinCEN cites the Islamic motion Hamas and the Democratic People’s Republic of Korea as normal actors taking benefit of these mixed solutions to make ambiguous and anonymous transactions.

Recently, several lawmakers have place stress on the Treasury Department and the Joe Biden administration, calling for crackdowns and actions towards the use of cryptocurrency in terrorist financing, specifically in the context of Hamas’ recognition of cryptocurrency donations in the encounter of developing conflict with Israel.

Earlier this week, the US Treasury Department announced sanctions towards Hamas-linked men and women and entities, which includes a Gaza-primarily based corporation accused of currently being a Bitcoin conduit for terrorists.

Yesterday, Senator Elizabeth Warren along with 102 other lawmakers submitted a request to US authorities to get robust action towards the use of cryptocurrency in terrorist financing. Additionally, fentanyl trafficking through cryptocurrency is also a important concern in the United States.

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