U.S. Treasury Department: No intention to ban cryptocurrency mixers, aiming to enhance transparency

At the Consensus conference, Brian Nelson, the U.S. Treasury's Deputy Secretary in charge of terrorism and financial intelligence, stated that the Treasury has no intention to ban cryptocurrency mixing services. Nelson explained that FinCEN's 2023 proposal aims to list mixers as a "major money laundering issue" and requires Virtual Asset Service Providers (VASPs) to report crypto transactions involving mixing in order to promote transparency rather than banning mixers. Although industry insiders are worried that this proposal will lead to a complete ban on cryptocurrency mixing services, Nelson clarified that it is only for preventing money laundering and financing terrorism. The Treasury hopes to work with the industry to develop tools that enhance privacy without supporting illegal activities.