FinCEN Proposes Designating Crypto Mixers as Money Laundering Hubs

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has put forward proposals to classify cryptocurrency mixing as a significant “money laundering concern” in light of the recent attacks by Hamas on Israel.

In a notice released on October 19, FinCEN reported an increase in the proportion of convertible virtual currency transactions processed by mixers that are likely linked to illicit activities. To address this, FinCEN is suggesting that domestic financial institutions and agencies adopt specific recordkeeping and reporting requirements for transactions involving cryptocurrency mixers.