US Treasury Department: No intention to ban cryptocurrency mixers, aims to enhance transparency

At the Consensus conference, Brian Nelson, the Deputy Assistant Secretary for Terrorism and Financial Intelligence at the US Treasury Department, stated that the department has no intention of banning cryptocurrency mixing services. Nelson explained that the Financial Crimes Enforcement Network's (FinCEN) 2023 proposal aims to classify mixers as a "primary money laundering concern" and requires virtual asset service providers (VASPs) to report encrypted transactions involving mixing to promote transparency, rather than banning mixers. While industry insiders are concerned that this proposal will lead to a comprehensive ban on cryptocurrency mixing services, Nelson clarified that this is only to prevent money laundering and terrorism financing. The Treasury Department hopes to work with the industry to develop tools that enhance privacy without supporting illegal activities.