- Following the arrest of the developers of Samourai Wallet, several Bitcoin coin mixing operations are leaving the United States for more crypto-friendly regions.
- Wasabi Wallet and Trezor have announced the closure of their mixing services, citing regulatory pressures.
- The U.S. Securities and Exchange Commission (SEC) is leading a warpath against cryptocurrency, with a focus on coin mixers.
As regulatory pressures mount, Bitcoin coin mixing operations are leaving the U.S. for more crypto-friendly regions. This article explores the recent developments and their implications for the crypto industry.
Bitcoin Coin Mixers Exit U.S. Amid Regulatory Pressure
Following the arrest of Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill, other Bitcoin coin mixing operations are reading the signs and exiting the United States. The U.S. Attorney’s Office of the Southern District of New York charged the founders with operating a cryptocurrency mixer that facilitated over $2 billion in unlawful transactions and more than $100 million in money laundering transactions with illegal dark web marketplaces.
Wasabi Wallet and Trezor Announce Closure of Mixing Services
After Samourai Wallet shut down, Wasabi Wallet developers ZKSnacks announced the preemptive closure of its mixing service, banning U.S. customers from using its services. Hardware wallet Trezor followed suit, announcing that its mixer service was also going away. The companies cited regulatory pressures as the main reason for their decisions.
SEC Leads Warpath Against Cryptocurrency
The U.S. Securities and Exchange Commission (SEC) is leading other regulatory and law enforcement agencies along a warpath against cryptocurrency. The SEC has a long history of what many critics have called “regulation by enforcement.” It has charged crypto coin mixer developers for acting as illegal money transmitters, while the U.S. Department of Justice has charged several crypto developers with money laundering.
Conclusion
The recent developments highlight the increasing regulatory pressures on cryptocurrency operations in the U.S., particularly those offering coin mixing services. As these services exit the U.S. market, it remains to be seen how the landscape will evolve and what implications this will have for the broader crypto industry.
