US Treasury: No Ban on Crypto Mixers

US Treasury: No Ban on Crypto Mixers

The US Treasury Department is "not looking to ban cryptocurrency mixing services," according to Treasury official Brian Nelson, under secretary for terrorism and financial intelligence, in an interview with CoinDesk. Nelson said that the Financial Crimes Enforcement Network's (FinCEN) rules on crypto mixers, implemented last year, "were not designed to ban the services themselves but rather to increase transparency." The rules, which require crypto mixers to register with FinCEN and collect user information, were met with criticism from some industry participants, who argued that they would stifle innovation and drive users to unregulated services. Nelson said that the Treasury is aware of these concerns and is "working to address them." He also said that the Treasury is "open to working with the crypto industry to develop new ways to mitigate the risks associated with crypto mixers." This could include the use of new technologies, such as zero-knowledge proofs, to protect user privacy. The Treasury's stance on crypto mixers is a significant development, as it suggests that the government is not seeking to ban the services outright. This could provide some relief to the crypto industry, which has been concerned about a potential crackdown on mixers.