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US Blockchain Integrity Act: Temporarily Bans Crypto Mixers

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US Blockchain Integrity Act: Temporarily Bans Crypto Mixers

A new bill has been introduced in the United States House of Representatives that aims to ban cryptocurrency mixers for a period of two years. The bill, known as the Blockchain Integrity Act, is spearheaded by five Democratic congressmen, with Sean Casten taking the lead. In a statement, Casten defined a crypto mixer as a platform that allows users to generate a new address and withdraw their funds without revealing the connection between the depositor and withdrawal addresses. Violations of this proposed ban would result in civil penalties of up to $100,000.

Under this bill, financial institutions, including cryptocurrency exchanges and virtual asset service providers, would be temporarily prohibited from accepting funds that have gone through a mixer. Funds would not be allowed to be withdrawn directly to the address of a mixer. The aim is to prevent illicit finance associated with mixers. During the two-year ban, the Treasury Department would be responsible for compiling a comprehensive report on various aspects of mixers, including the percentage of transactions involving illicit finance, legitimate uses of mixers, law enforcement capabilities, and regulatory approaches in other jurisdictions.

The bill has garnered support from fellow representatives, including Bill Foster, Brad Sherman, and Emanuel Cleaver, who have cosponsored the bill. Sherman, known for his opposition to cryptocurrencies, emphasized the insidious nature of mixers, associating them with activities such as terrorism financing, evading sanctions, tax evasion, and cybercrime. This legislation would mark another step by the United States government in cracking down on crypto mixers.

This is not the first time that the United States has made moves against crypto mixers. In August 2022, the Treasury’s Office of Foreign Asset Control listed addresses linked to the mixer Tornado Cash as Specially Designated Nationals, effectively prohibiting their use by U.S. citizens. The move faced a legal challenge, but ultimately prevailed. The founders of Tornado Cash have since been charged with various crimes, including money laundering and sanctions violations, in both the United States and the Netherlands. Monero, another cryptocurrency associated with mixers, has faced pressure due to the introduction of new Anti-Money Laundering laws by the European Union.

3 thoughts on “US Blockchain Integrity Act: Temporarily Bans Crypto Mixers

  1. There are already existing regulations in place to combat illicit activities. Banning mixers seems like an overreach and unnecessary duplication of efforts. 😒

  2. Thank you, Bill Foster, Brad Sherman, and Emanuel Cleaver, for supporting this bill! Together, we can create a safer and more secure environment for cryptocurrencies.

  3. Thank you, Sean Casten and other representatives, for recognizing the importance of this issue. The fight against illicit finance requires strong leadership, and you’re providing just that!

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