FinCEN Drops Proposed Crypto Wallet and Mixer Reporting Rules

Two ideas FinCEN had rejected would have stretched reporting rules for cryptocurrency activity. Originally suggested in 2020, the first would have demanded that financial organizations check identities for specific transactions including self-custody wallets and disclose bigger transactions. Introduced in 2023, the second would have demanded more investigation and reporting on transactions using crypto mixers.

According to FinCEN, the mixer plan would probably slow down legitimate activity and strain financial institutions. The withdrawals support the administration's drive for digital-asset legislation it deems appropriate and show a success for privacy activists and business groups fighting the suggested criteria.

Though it does not abolish current anti-money-laundering and Bank Secrecy Act duties for regulated companies like banks, exchanges, and money services providers, the modification eliminates these suggested guidelines. It also does not legalize money laundering; it only means that the extra suggested reporting requirements won't move forward.