On October 19, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a Notice of Proposed Rule Making (NPRM) designating international Convertible Virtual Currency Mixing (CVC mixing) as a money laundering concern. The NPRM is a key part of the Treasury’s efforts to promote transparency for CVC mixing activities.

To know more, click here https://www.fcctimes.com/2023/10/19/u-s-proposes-rules-to-combat-money-laundering-risks-in-virtual-currency-mixing-services/

The lack of transparency in global CVC mixing supports the ransomware ecosystem, rogue state actors, and other criminals in funding their unlawful activities, leading to severe money laundering and security risk. Boosting transparency is crucial to prevent illicit access to global financial systems.

To advance these objectives, the NPRM requires financial entities to report transactions suspected to involve crypto mixers, which are anonymized software tools that allow users to conceal the source or owner of digital assets.