FinCEN Withdraws Crypto Rules Targeting Mixers And Unhosted Wallets

TL;DR FinCEN has withdrawn two proposed digital-asset rules covering unhosted-wallet transactions and convertible virtual currency mixing. Both proposals had remained unfinished for years and would have added new recordkeeping or reporting obligations for financial institutions. The withdrawals do not remove the AML and KYC rules that already apply to regulated crypto businesses. Two long-running U.S. crypto rule proposals have finally been taken off the table. The Financial Crimes Enforcement N