From Nasdaq, Inc.:

The Financial Crimes Enforcement Network (FinCEN) proposed new regulatory regime for crypto mixing services, treating them as money laundering threats, raising public concern. Over 2,000 comments were submitted, with privacy concerns and fears of driving legitimate crypto use offshore among the main arguments. Various industry players and groups voiced opposition to the proposal, urging FinCEN to limit its application and analyze potential unintended consequences.

FinCEN’s proposal aimed to address concerns about malicious actors using crypto mixers to launder funds or support terrorist activities, prompting the watchdog to target these entities. Among the 2,000 comments received, concerns were raised about the potential infringement on personal rights, the capture of broader crypto ecosystem, and the potential unintended consequences of the new regulations.

Industry responses to FinCEN’s proposal varied widely, with some arguing that the proposed rule was too broad and would result in excessive reporting on transactions not tied to illicit activity. Other concerns included the potential migration of crypto activities to less regulated countries and the burden of duplicative requirements for credit unions. Very few comments expressed support for the rule, with some suggesting that it could be strengthened in certain areas.

The European Banking Authority will hold a hearing on prudential regulation details within the Markets in Crypto Asset regulatory framework. The New York Times reported on the troubling use of click farms and AI. The Air Current detailed the recent incident of a Boeing 737 MAX 9 fuselage losing a door plug mid-flight. And Fortune discussed Custodia’s litigation with the Federal Reserve over a bank charter bid.

Author Nikhilesh De welcomes feedback on further topics and offers engagement via email or Twitter, with weekly updates to come. This news update does not necessarily reflect the views of Nasdaq, Inc.



Read more: How the Crypto Industry Responded to FinCEN’s Proposed Mixer Rule