Amidst the nation facing several concerns regarding money laundering risks, the US Treasury is getting ready to target the crypto mixers.
The Financial Crimes Enforcement Network (FinCEN) of the US Treasury has made a release of certain proposed rules that will name the cryptic mixers as a threat. This will be applied to the ones who blend the digital funds of the users to make them more anonymous and therefore harder to trace and monitor. FinCEN has issued a notice with the currently proposed rules and this will be open to the public for the next 90 days to make comments on it.
Why Does The Treasury Target The Crypto Mixers?
This is in relation to the possible threats that Hamas and other similar terrorist organizations can pose to the security of the entire nation. It became a bigger concern as it was found that these terrorist organizations had been raising funds in the crypto platforms in an attempt to remain undetected.
It is the first time in history that the government is taking a similar step that will do a giant sweep to eliminate all threats of money laundering. The actions of the government will apparently have an impact on the whole class of crypto mixers.
If the government proceeds to declare a national primary-level money laundering concern all the financial institutions of the nation will no longer be able to make deals with the mixers and there will be restrictions on the interactions that they have with the mixers as well.
US Treasury Says That:
said in a statement that
the current cation of the Treasury to target the crypto mixers is to be considered as an underscore for the commitment that the Treasury has for the combating of the attempt to exploit the Convertible Virtual Currency by some illicit actors, that includes some certain state-affiliated cyber actors, cybercriminals and also terrorist groups.Wally Adeyemo, the Deputy Secretary of the US Treasury
FinCEN Says That:
This was the first time the agency was making use of its power to target the primary money laundering concerns about many transactions. After the designation of the issued set of rules, the US financial institutions will face a wide variety of restrictions.Andrea Gacki, the Director of FinCEN
FinCEN stated that the mixing services enable the users to make transactions without having to reveal their identity and many illicit actors around the world are exploiting this. This was a mention of the terrorist organizations such as Hamas, Palestinian Islamic Jihad, and also the Democratic People’s Republic of Korea (DPRK) making use of the platform for their own selfish interests. Such organizations having access to conduct the transactions with anonymity can only affect the public negatively, and seriously question the law and order of the nations.
The restrictions will make the financial institution need extra due diligence with special attention on the particular account transaction of the crypto mixers. This can cause a prohibition to opening or even maintaining any kind of payments through the accounts.