US Treasury Says 'Lawful' Crypto Users Have Valid Reasons To Use Mixers
The US Treasury acknowledged that lawful crypto users have legitimate reasons, like privacy, for using mixers, while also noting their illicit use by criminals.Summary
The United States Treasury Department, in a report to Congress on countering illicit finance in digital assets, acknowledged that mixers, which obscure crypto transfers, serve legitimate privacy purposes for lawful users. The report stated that individuals might use mixers to protect sensitive information regarding personal wealth, business payments, or charitable donations from appearing on public blockchains.
However, the Treasury also highlighted the dangers associated with non-custodial, decentralized mixers, noting their use by cybercriminals, including North Korea-linked hackers, for money laundering. Conversely, the report suggested that custodial mixers, which centralize control, could potentially offer identifying information usable for tracking users and transactions.
The context for this report is increasing financial surveillance and legislative efforts in the US to impose Know-Your-Customer (KYC) requirements on digital asset service providers and DeFi platforms, issues that have raised significant privacy concerns among DeFi leaders and investors.
(Source：Cointelegraph)