U.S. Legislators Propose 2 year ban on Bitcoin Mixers in New Bill
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To strengthen financial regulations, U.S. Congressman Sean Casten, along with co-sponsors Bill Foster, Brad Sherman, and Emanuel Cleaver, introduced the Blockchain Integrity Act to the House of Representatives on March 7th.
This pioneering piece of legislation seeks to impose a two-year moratorium on the utilization of Bitcoin mixers, tools which obscure the origin of Bitcoin transactions, thereby enhancing privacy but also raising concerns about their potential use for illicit purposes.
Heavy-handed regulation claims money laundering concerns
The proposed moratorium is part of a comprehensive effort to clamp down on the supposed misuse of these privacy tools, which, according to Rep. Sherman, may ultimately lead to a full-fledged ban in the United States. The bill directly targets financial institutions, including cryptocurrency exchanges and virtual asset service providers, prohibiting them from processing transactions that involve Bitcoin mixers. Should these regulations be violated, institutions could face civil penalties up to $100,000.
During this two-year period, the U.S. Treasury Department is tasked with conducting an extensive study to evaluate the implications of Bitcoin mixers. This study will focus on their role in illicit finance, their legitimate uses, and the effectiveness of current law enforcement responses, along with a comparative look at regulatory frameworks applied internationally.
This legislative initiative is a continuation of the U.S. government's rigorous approach towards regulating the Bitcoin industry. Previous actions, such as the crackdown on the Bitcoin mixer Tornado Cash, exemplify the government's intent to thwart the potential use of Bitcoin for money laundering and other criminal activities. These developments, coupled with similar regulatory endeavors like the EU's Anti-Money Laundering laws, suggest a steadfast global shift towards stringent oversight of technologies that could potentially compromise financial security.
