The Treasury Department is withdrawing its 2023 finding that international crypto mixing is a class of transactions of primary money laundering concern, along with a related reporting and recordkeeping proposal. FinCEN said October 6 publication in the Federal Register would make the withdrawal effective. The proposal would have required domestic financial institutions to report covered transactions involving mixing, including activity that pooled funds, split transfers, used single-use wallets, swapped crypto assets or introduced delays. Reports could have included wallet addresses, transaction hashes, IP addresses and customer identity information. FinCEN cited concerns that the broad definition could chill legitimate activity and create a substantial compliance burden. The notice also says the agency will take no further action on a separate unhosted-wallet proposal that had already been listed as withdrawn in April 2024. Existing registration, anti-money-laundering, customer-check, recordkeeping, suspicious-activity reporting and Funds Travel Rule obligations remain in force for covered crypto businesses. FinCEN said it will continue monitoring mixing for money laundering, terrorist financing and other illicit activity and may take further steps.