FinCEN withdraws CVC mixing special measure finding
Covered financial institutions are no longer subject to the proposed reporting rules on CVC mixing as of Oct. 6, 2026
FinCEN announced the withdrawal of its finding that international convertible virtual currency (CVC) mixing is a class of transactions of primary money-laundering concern, and of the associated notice of proposed rulemaking. The action removes the special measure that would have imposed enhanced recordkeeping and reporting requirements on covered financial institutions.
The withdrawal is effective October 6, 2026 and rescinds the proposal published on October 23, 2023 (88 FR 72701). That proposal would have required covered institutions to file reports containing the amount of CVC transferred, CVC type, mixer used, wallet address, transaction hashes, dates, IP addresses, and a narrative description, as well as to retain full customer identity information.
FinCEN cited concerns raised during the comment period that the expansive definition of CVC mixing could chill lawful activity and impose a substantial reporting burden on covered institutions. The agency will continue to monitor CVC mixer activity for indications of money laundering, terrorist financing, or other illicit finance, but no special measures are imposed at this time.
The withdrawal is made under section 311 of the USA PATRIOT Act, which authorizes the Secretary of the Treasury to make findings and impose special measures. The agency's broader Bank Secrecy Act obligations remain unchanged. FR Doc No: 2026-20429.
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