US says crypto mixers threaten national security amid Middle East conflict
The U.S. Treasury Department is currently pushing for new rules that enhance monitoring and reporting capabilities on virtual currency mixers leveraged by illicit actors and terrorist groups. On Oct. 19, the Wall Street Journal reported that President Biden’s administration is set to designate crypto mixers as a threat to national security . The move reportedly comes as the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) steps up vigilance against crypto terror financing citing geopolitical tension between Israel and Hamas. FinCEN published a Notice of Proposed Rule Making (NPRM) detailing its argument for this new legislation that would compel financial institutions to track, report on, and even block transactions linked with suspicious convertible virtual currency (CVC) mixers. CVC mixing offers a critical service that allows players in the ransomware ecosystem, rogue state actors, and other criminals to fund their unlawful activities and ob...