The Financial Crimes Enforcement Network (FinCEN), a part of the U.S. Department of the Treasury, has announced a new rule aimed at increasing transparency in Convertible Virtual Currency Mixing (CVC mixing). This move is part of a broader effort to combat money laundering and terrorist financing. The rule identifies CVC mixing as a primary concern for money laundering and proposes measures to increase transparency in these transactions. This is especially targeted at malicious actors like terrorist groups and rogue states who use CVC mixing to hide their financial activities.
Deputy Secretary of the Treasury Wally Adeyemo and FinCEN Director Andrea Gacki emphasized that the lack of transparency in CVC mixing poses a significant risk to national security. The proposed rule would require financial institutions to report transactions involving CVC mixing, especially those that occur outside the United States.
This announcement follows several actions by the Treasury to counter illicit finance involving the use of mixing services. For instance, in 2022, OFAC designated Blender.io and Tornado Cash, which were involved in large-scale virtual currency heists.
⚡️Tags: FinCEN, U.S. Treasury, CVC Mixing, cryptocurrency, regulation, money laundering, terrorist financing
🌐Sources: FinCEN Official Release
