Content overview: “FinCEN Withdraws $10,000 Crypto Reporting Rule for Private Wallets and Mixer Proposal”. Treasury's Financial Crimes Enforcement Network (FinCEN) has withdrawn two long-pending regulatory proposals that would have imposed significant reporting requirements on cryptocurrency transactions involving self-custodied wallets and mixing services. The first proposal, initially introduced in December 2020, would have required banks and money services businesses to verify the identity of customers and report transactions over $10,000 involving unhosted wallets—wallets not held by a financial institution. The second proposal, from October 2021, sought to impose recordkeeping and reporting requirements on transactions involving convertible virtual currency mixing, a practice that enhances privacy by obscuring transaction trails.
Both rules faced substantial criticism from the crypto industry and privacy advocates, who argued they were overly broad, technologically impractical, and would stifle innovation. The withdrawals, published in the Federal Register, mark a significant retreat from aggressive anti-money laundering enforcement in the digital asset space. The full version stays on the original page, which this listing opens directly.