Industry Players Express Concerns Over FinCEN's Proposed Crypto Mixing Services Regulations

The Financial Crimes Enforcement Network proposed a new regulatory regime for crypto mixing services in October, which could potentially treat privacy tools as a threat to money laundering and impose new recordkeeping rules on those using them. The industry had a chance to provide feedback through a comment period that closed last week, with some expressing concerns that the proposed rule would infringe on personal rights and drive legitimate crypto use offshore. The Financial Intelligence Unit of Bangladesh has also expressed concerns about the proposed rule to regulate self-hosted crypto wallets. FinCEN will review the comments before deciding whether to finalize the proposal or take other action. Additionally, the UK government has published the results of a public consultation into a digital pound, while the European Banking Authority will hold a hearing on prudential regulation details within the markets in Crypto Asset regulatory framework.