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US Treasury proposes crypto mixer-crackdown to end anonymous transactions

US Treasury proposes crypto mixer-crackdown to end anonymous transactions

The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed a new rule that will increase transparency around crypto mixer transactions.

Crypto mixers are software tools that allow the owner of the digital currency to mask their identity. The move attempts to block usage of digital currency by organisations deemed to be ‘terrorist groups’ by the US government.

Crypto has historically been criticised for its facilitation of anonymous transactions, which is why federal regulators are trying to increase transparency and bolster regulation of the sector.

The FinCEN proposal follows US officials’ efforts to block funding to Palestinian militant group Hamas, which previously received funding through a Gaza-based crypto exchange. In the last year the US sanctioned crypto mixers Tornado Clash and Blender for allegedly supporting North Korean hacking organisation Lazarus Group.

A statement by deputy treasury secretary Wally Adeyemo reported by Reuters read: "Today’s action underscores Treasury’s commitment to combatting the exploitation of Convertible Virtual Currency mixing by a broad range of illicit actors, including state-affiliated cyber actors, cyber criminals, and terrorist groups.”

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