The U.S. Treasury Department has withdrawn two controversial regulatory proposals that closely affected cryptocurrency users. The department announced that the oversight rules previously proposed by the Financial Crimes Enforcement Network (FinCEN) for personal cryptocurrency wallets, known as “unhosted wallets,” and cryptocurrency mixing services will no longer be implemented.
According to information reported by Coin Center, these regulations have drawn criticism from privacy advocates in the crypto sector for years. The first proposal stipulated that financial institutions would assume more comprehensive reporting and record-keeping obligations for certain cryptocurrency transfers made to wallets controlled by users. The other regulation aimed to expand reporting and oversight mechanisms for transactions conducted through cryptocurrency mixer services.
