The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed a new rule aimed at enhancing transparency in crypto mixer transactions.
Crypto mixers are software tools that enable digital currency owners to obscure their identities. This initiative seeks to prevent the use of digital currency by organizations classified as ‘terrorist groups’ by the US government.
Historically, cryptocurrency has faced criticism for facilitating anonymous transactions, prompting federal regulators to push for increased transparency and stronger regulation within the sector.
The FinCEN proposal is part of the US government’s broader efforts to impede funding to the Palestinian militant group Hamas, which has previously received financial support through a Gaza-based crypto exchange. Over the past year, the US has imposed sanctions on crypto mixers Tornado Clash and Blender, alleging their involvement with the North Korean hacking group Lazarus.
Deputy Treasury Secretary Wally Adeyemo stated, as reported by Reuters, “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.”