FinCEN withdraws 2023 finding that crypto mixing is a primary money laundering concern
FinCEN has withdrawn both its finding and the proposed rule that would have branded international convertible virtual currency mixing a class of transactions of primary money laundering concern. The reversal kills a reporting and recordkeeping regime that compliance teams had been preparing for since October 2023, and signals how the current Treasury weighs financial privacy against illicit finance risk on public blockchains.
- FinCEN is withdrawing its finding and the proposed rule published at 88 FR 72701 (October 23, 2023) as of October 6, 2026.
- The proposed rule would have imposed special measure one, requiring covered financial institutions to report and keep records on suspected CVC mixing, including wallet addresses, transaction hashes, IP addresses and customer identity data.
- The withdrawal is informed by comments that the expansive definition of CVC mixing could chill legitimate activity and impose a large reporting burden.
- FinCEN cites the July 2025 President's Working Group report under Executive Order 14178, which supports lawful users transacting privately on public blockchains.
- FinCEN states it will continue to monitor CVC mixers for money laundering, terrorist financing or other illicit finance activity and may act in future.