US FinCEN withdraws proposed rules on crypto mixers and unhosted wallets

The Financial Crimes Enforcement Network, a bureau under the United States Department of the Treasury, has officially withdrawn two proposed rules targeting unhosted wallets and cryptocurrency mixers. Cointelegraph reported that the agency announced the decision on Monday as part of the Trump administration's deregulatory agenda. [1]

The withdrawn proposals include a December 2020 measure that would have applied recordkeeping, verification, and reporting requirements to certain transactions. According to Cointelegraph, FinCEN also dropped a 2023 proposal focused on convertible virtual currency mixing following concerns over legitimate financial activity. [1]

Bitcoin is a cryptocurrency that relies on cryptography rather than central authorities to manage its creation and network operations. Originally created by Satoshi Nakamoto as a medium of exchange, the asset is now primarily regarded by market participants as a store of value. [2]