“More broadly, the Treasury Department is aggressively combatting illicit use of all aspects of the CVC ecosystem by terrorist groups, including Hamas and Palestinian Islamic Jihad.”
"Never leave a good crisis to waste".
This is attacking our privacy and Bitcoin altogether. It will push everything decentralized. If I'm aware that centralized exchanges will be forced to classify mixed coins as funding terrorism, then I'd absolutely not risk it. The bill is clearly dystopian, but I didn't expect more from not technically competent politicians; every coin is potentially originating from what this article deems as mixing. What are they going to do? Completely ban bitcoin? I'm looking forward to see how this goes.
I very much agree. This is not only an attack on mixers, this is also an attack on the whole cryptospace. The broad wording under the new rules was speculated to also include DeFi and other types of decentralized swaps.
Presently there might be 300 million wallets that might be affected and the owners of those wallets might have their personal information reported. Be careful on using a mixer then sending coins to a centralized exchange or a gambling site where you have KYC.
In the course of compliance with special measure one, covered financial institutions may be required to submit reports and retain records containing certain unique identifiers108 and other personal information109 of a party, or parties, to a CVC mixing-exposed transaction.
Based on a recent report, this could affect more than 300 million users of unhosted CVC wallets insofar as a user’s personal information may be reported if their wallet is deemed by a covered financial institution to be involved in a covered transaction. Because there is no restriction on the number of wallets an individual may have, this number may overestimate the number of unique individuals whose personal information may be required.
To the extent that previously reported estimates regarding the distribution of CVC mixer users by type—privacy-oriented versus abusers of anonymity—are usable for inference, special measure one could require the reporting of personal information in connection with up to approximately 66 (87) percent of CVC mixer deposits in the absence of any other identifiable connection to high risk (illicit) activity.Source https://www.fincen.gov/sites/default/files/federal_register_notices/2023-10-19/FinCEN_311MixingNPRM_FINAL.pdfAlso, if the American government wanted to really crackdown on terrorist funding and moneylaundering, they should begin with the biggest banks in Europe and sanction them hehehe.