Crypto

Proposed stricter measures from the us treasury would significantly reduce the use of crypto mixers

To counter the use of cryptocurrency "mixers" by organizations like the Palestinian militant group Hamas, the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department proposed Thursday greater transparency around these services. Should the rule become law, financial institutions would be obligated to notify details about any transactions they believe to have involved crypto mixers, which are anonymous software programs that let users hide the source or owner of digital assets.

In light of this month's deadly Hamas attack in Israel, FinCEN's proposal highlights growing worry among U.S. officials about the role of cryptocurrencies in financing entities classified as "terrorist groups" by the U.S. government. The cryptosphere has long hailed digital assets as platforms for transactions that can be carried out anonymously, but regulators have cracked down on the sector with several federal enforcement proceedings.

According to Reuters, Hamas employs a global network of financing, including cryptocurrencies, to channel donations from foundations and allies. The Biden administration imposed sanctions on a Gaza-based cryptocurrency exchange on Wednesday to cut off Hamas revenue. Additionally, US lawmakers asked the White House to act quickly to stop the use of cryptocurrency to circumvent sanctions and finance organizations like Hamas and Hezbollah. The cryptocurrency mixers Tornado Cash and Blender were subject to sanctions last year by the US.