{"id":8299,"date":"2026-10-06T12:00:00","date_gmt":"2026-10-06T09:00:00","guid":{"rendered":"https:\/\/legalbit.top\/en\/fincen-withdraws-unhosted-wallet-mixing-proposals\/"},"modified":"2026-10-26T01:18:24","modified_gmt":"2026-10-25T22:18:24","slug":"fincen-withdraws-unhosted-wallet-mixing-proposals","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/fincen-withdraws-unhosted-wallet-mixing-proposals\/","title":{"rendered":"FinCEN Withdraws Its Unhosted Wallet and Crypto Mixing Proposals"},"content":{"rendered":"\n\n
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On 6 October 2026 the US Treasury’s Financial Crimes Enforcement Network (FinCEN) withdrew two documents. The first is the 2020 proposed rule on transactions with unhosted wallets, and the second is the 2023 decision on crypto mixers. This news item covers what was withdrawn, why, and what it means for companies.<\/p>

Checked 25 October 2026.<\/p><\/div><\/section>

What was withdrawn<\/h4>

The unhosted wallet proposal.<\/b> The proposal of 23 December 2020 would have required banks and money services businesses to report transactions with unhosted and other covered wallets above USD 10,000 (also when aggregated over 24 hours), keep records of transactions above USD 3,000 and verify customers. FinCEN says it will take no further action on this proposal.<\/p>

The mixing measure.<\/b> The proposal of 23 October 2023 treated convertible virtual currency mixing as a class of transactions of primary money laundering concern and would have added enhanced recordkeeping and reporting. FinCEN withdrew both the finding and the proposal.<\/p><\/div><\/div>

Why<\/h4>

On mixers, FinCEN points to comments that the broad definition could chill lawful activity and impose a heavy reporting burden. It also cites the July 2025 report of the President’s Working Group on Digital Asset Markets, which supported the ability of lawful users to transact privately on public blockchains. FinCEN describes the wallet withdrawal as part of an effort to make digital asset rules fit for purpose.<\/p><\/div><\/div>

What stays<\/h4>

Both documents were only proposals and never took effect, so the withdrawal does not change companies’ current obligations. FinCEN writes that illicit actors still use mixers, that it will keep monitoring them and that it may act later.<\/p><\/div><\/div>

What businesses should do<\/h4>

Companies that serve US customers or work through US banks do not need to prepare for the unhosted wallet requirements from the withdrawn proposal. Customer checks, sanctions screening and transaction monitoring stay in place. We covered the legal status of privacy coins in our article on Monero and Zcash<\/a>.<\/p><\/div><\/div>

Primary sources<\/h4>