Samourai Wallet, Strike and Others Ask FinCEN to Withdraw Proposed Rules Tied to Crypto Mixing

Samourai Wallet, River, Strike, Swan, and different firms within the cryptocurrency house have despatched a letter to the Financial Crimes Enforcement Network (FinCEN), commenting on the proposed guidelines over mixing transactions launched in October. These firms are asking FinCEN to withdraw its proposal as a result of it considers it insufficient for a lot of causes, criticizing it for being “overbroad” and together with lawful actions below its scope.

Samourai Wallet Blasts FinCEN Cryptocurrency Mixing Proposed Requirements

A gaggle of 26 firms linked to the cryptocurrency business have despatched a letter to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury, commenting on the validity of the principles the establishment has proposed to use for cryptocurrency mixing transactions in October.

The letter, produced by Samourai Wallet and Ten31 and co-signed by River, Strike, Ronindojo, Swan Bitcoin, Primal, GRIID, Zaprite, Peach, Mempool Space, Upstream Data, Stakwork, Vida Global, Voltage, Coinkite, Mutiny Wallet, Standard Bitcoin Company, Satoshi Energy, Cathedra Bitcoin, Anchorwatch, Bitnob, Oshi, Battery Finance, Fold, and Start9 asks FinCEN to withdraw the principles proposed based mostly on a number of causes, calling them overbroad and telling these would intrude with legitimate safety practices for blockchain networks.

The co-signers of the letter state that the appliance of those guidelines would “overly burden our use of such technologies in ways that would not assist FinCEN in achieving its mandate of preventing money laundering and other illicit use of money.”

The letter additionally feedback that the proposed guidelines classify the practices thought of by most business actors to be lawful as mixing, encumbering using these measures for privacy-related aims. In this regard, the co-signers state:

Employing these strategies to safeguard useful digital belongings is as routine and mundane and freed from illicit objective as utilizing two-factor authentication to safe a digital pockets.

Furthermore, it argues that FinCEN doesn’t have to impose extra reporting duties on firms already reporting flagged or suspicious transactions, with this information being obtainable on public blockchains for the establishment. “Covered financial institutions should not have to become de facto law enforcement officers to make investigations easier for FinCEN,” it concludes.

What do you consider Samourai Wallet’s tackle the proposal of rulemaking for cryptocurrency mixing transactions? Tell us within the feedback part beneath.