The US Treasury does not intend to ban cryptomixers
Date: 2024-05-30 Author: Henry Casey Categories: IN WORLD
Statement by the representative of the Ministry of Finance
The US Treasury does not plan to ban the activities of cryptocurrency mixers. Brian Nelson, Under Secretary of the Treasury for Counterterrorism and Financial Intelligence, said this in an interview with CoinDesk. He emphasized that the Financial Crimes Enforcement Network's (FinCEN) proposal to maintain an accounting of transactions associated with cryptomixers is aimed solely at ensuring transparency and not at banning these services.
Ensuring transparency
Nelson noted that the department understands the desire of cryptocurrency users to maintain the confidentiality of their transactions. However, he stressed that a balance needs to be found between privacy and preventing illegal activities such as terrorist financing. In this regard, the Ministry of Finance offers cooperation to the crypto sector to develop solutions that would increase confidentiality without violating anti-money laundering legislation (AML) and customer identification procedures (KYC).
The Real Goal of Crypto Mixers
According to Nelson, most cryptomixers are not designed to enhance privacy. Instead, they are often used to bypass AML and KYC rules. He clarified that the purpose of the regulation is not to violate user privacy, but to ensure that neither individuals nor virtual asset service providers are involved in financing terrorist organizations such as Hamas or North Korea.
Historical context
In October 2023, the media reported about US plans to recognize cryptomixers as money laundering centers. However, according to Nelson, current initiatives are not aimed at banning, but at introducing rules that will make the activities of these services more transparent and consistent with international standards for combating financial crimes.
The U.S. Department of the Treasury reaffirms its commitment to combating financial crime and terrorism while recognizing the importance of privacy for cryptocurrency users. Brian Nelson noted that cooperation between regulators and the crypto sector is key to developing effective solutions that will ensure the security and transparency of financial transactions without violating the right to privacy.
