FinCEN has announced the withdrawal of its finding that international convertible virtual currency mixing constitutes a class of transactions of primary money laundering concern, together with the associated proposed reporting rule. The notice is scheduled for Federal Register publication on 6 October 2026, following the agency’s announcement on 5 October. It cites concerns about legitimate activity and the reporting burden created by the proposed definition. The decision removes this particular regulatory initiative while leaving a separate question for financial institutions: how to assess potentially concealed flows without treating every demand for privacy as evidence of crime.
