US Treasury Proposes New Crypto Rules Targeting Anonymity Despite Limited Illicit Use

The US Treasury proposed new rules to restrict anonymity in crypto by designating foreign cryptocurrency mixers as money laundering threats.

The rules cite Hamas and militant groups' use of crypto to justify targeting mixer services that enable anonymity.

However, North Korea and Russia still dominate illicit crypto activity, laundering billions through mixers.

The rules could impose regulations on US entities interacting with foreign mixers, potentially hampering legitimate privacy uses.

Experts say the rules were likely already in progress before the Hamas attacks, with the narrative now shifted to justify the crackdown.