The proposed US Blockchain Integrity Act will ban crypto mixers for 2 years
A bill has been introduced in the United States House of Representatives that would ban the cryptocurrency Microcryptox for two years. The so-called Blockchain Integrity Act was sponsored by five Democratic members of Congress led by Sen. Caston.
Caston described CryptoMicker in its statement as a “pool that allows users to generate new addresses and withdraw funds without revealing the relationship between addresses.”
The bill would temporarily prohibit financial institutions, including cryptocurrency exchanges, virtual asset service providers and any registered financial services businesses, from accepting funds passed through the mixer or allowing funds to be transferred directly to the mixer's address. Any violation is subject to civil penalties of up to $100,000.
Every two years, the Treasury Department compiles a report detailing the broad range of data. The report includes an estimate of the percentage of transactions with brokers that involve illicit financing, the use of legitimate platforms, the ability of law enforcement to monitor or prevent transactions, and regulatory approaches to brokers adopted in other jurisdictions.
Related: Coinbase, Paradigm, Others Argue Crypto Mixing Laws Are ‘Waste of Time'
Reps. Bill Foster, Brad Sherman and Emanuel Cleaver are cosponsors of the bill, which has yet to go to committee. Sherman, who has a long record of opposition to crypto, said in Kaston:
“Cryptocrypto is, as its name implies, a form of ‘hidden money'. […] Terrorist groups, sanctions evaders, tax evaders, cybercriminals, etc. all use mixers to hide their illegal activities.
The United States has previously cracked down on crypto mixers. The Treasury's Office of Foreign Assets Control placed addresses linked to mixer Tornado Cash on a specially designated citizen list in August 2022, preventing US citizens from using it. This action survived a court dispute a year later. The founders of that mixer have been charged in the US and the Netherlands with money laundering, embargo violations and related crimes.
Privacy cryptocurrency Monero (XMR) has come under pressure after the European Union introduced new anti-money laundering rules.
Magazine: Tornado Cash 2.0: The Race to Build Safe and Legal Coin Mixers
