FinCEN’s crypto mixing reporting for banks poses ‘disruptive’ risks, lawyers say
In an op-ed on Bloomberg Law, Steven Merriman and Jim Vivenzio of Perkins Coie raised concerns over FinCEN’s latest move to crack down on crypto mixers. The Financial Crimes Enforcement Network (FinCEN) is pushing for financial institutions to impose new compliance measures in its latest reporting plan, focusing on crypto transactions involving” convertible virtual currency (CVC) mixing.” According to fintech compliance lawyers Steven Merriman and Jim Vivenzio, FinCEN’s latest proposal broadens the definition of “mixing” and “mixers,” potentially targeting not only transactions involving traditional mixing services — e.g. sanctioned Tornado Cash — but also “innocuous blockchain transactions,” like converting one form of crypto to another. “The amount of monitoring and reporting contemplated by FinCEN’s proposal could be disruptive.” Steven Merriman and Jim Vivenzio While FinCEN’s primary focus is on th...