From my point of view, mixing isn't inherently criminal behavior either.... As a matter of fact, many people (including myself) use(d) mixer to increase their privacy. It's nobody's business how much BTC i hold, that's private information (just like my FIAT balance on my bank account). But this didn't stop the world's governements of attacking all mixing services, so i don't see why they wouldn't increase their attack surface by making every service that isn't 100% KYC and actively working with them a valid target.
Don't be surprised if they even make Privacy illegal soon, that is the way we are going now.
If they started to ban and arrest people who created open source wallets than be sure they will expand in future to other wallets and services.
They clearly wanted to send a message with this.
(...)
Well I picked up in the news that there is actually a proposed rule by the Commerce Department issued on 01/29/2024 - whose comments are being collected until 04/29/2024 - whose intend is to KYC "foreign customers" who use IaaS products:
The Executive order of January 19, 2021, “Taking Additional Steps To Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities,” directs the Secretary of Commerce (Secretary) to propose regulations requiring U.S. Infrastructure as a Service (IaaS) providers of IaaS products to verify the identity of their foreign customers, along with procedures for the Secretary to grant exemptions; and authorize special measures to deter foreign malicious cyber actors' use of U.S. IaaS products.(...)
The bill is aimed towards identifying foreign customers that intend to train AI models considering the next paragraph of the summary, but even still it doesn't hide the fact that it is still a intend to KYC people that use IaaS services:
(...) The Executive order of October 30, 2023, “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” further directs the Secretary to propose regulations that require providers of certain IaaS products to submit a report to the Secretary when a foreign person transacts with that provider or reseller to train a large Artificial Intelligence (AI) model with potential capabilities that could be used in malicious cyber-enabled activity.
[1]
https://www.federalregister.gov/documents/2024/01/29/2024-01580/taking-additional-steps-to-address-the-national-emergency-with-respect-to-significant-malicious