As pointed out by LoyceV:
From their own website (
archived):
A cryptocurrency mixing service is not necessarily illegal.
This puts us in the problem of defining the minimum that a mixer must provide in order to be described as legal, or in other words, how did the regulators know that In the case of Sinbad.io, more than 50 percent of all mixed cryptocurrencies were found to have a criminal origin.
In the case of Sinbad.io, more than 50 percent of all mixed cryptocurrencies were found to have a criminal origin. In the case of Sinbad. io, there are no measures in place to implement and enforce a Know Your Customer (KYC) or Know Your Transaction (KYT) policy.
Without seizing the servers, and having the customers’ data recorded and then ensuring that the percentage is higher than 50% and then arresting them, this was determined in advance when they tracked the servers and tried to shut down the service.
I think that the government's policy towards the mixers will be to force them to provide and record data and close every large mixer that does not cooperate.