Swan Bitcoin, a Bitcoin services platform, recently announced the adoption of measures in accordance with the Financial Crimes Enforcement Network (FinCEN), in the United States. The change is critical in its policy, affecting customers who use cryptocurrency mixing services, known as mixers. This decision comes in response to the stringent regulatory obligations imposed by the company’s partner banks and the United States’ Financial Crimes Enforcement Network (FinCEN).
What does the co-founder of Swan Bitcoin say?
Yan Pritzker, co-founder of Swan Bitcoin, addressed the issue in a public statement, reiterating the company’s commitment to privacy. While not opposed to the use of privacy blending tools by its customers, Pritzker emphasized that the company needs to adhere to standards set by its banking institutions. This compliance is crucial to the continuity of your Bitcoin gateway services.
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The policy adopted by Swan Bitcoin is a direct reaction to FinCEN’s proposed rule, which establishes new responsibilities for companies that process mixing services transactions. Pritzker criticized the wording of the rule, highlighting that it covers a wide range of Bitcoin-related activities, including the use of unique BTC addresses, the commingling of funds, and the prohibition of programmable transactions such as those carried out on Lightning Network channels.
Swan Bitcoin’s stance reflects a broader trend in the US, where financial regulators often portray cryptocurrency mixing services as facilitators of illicit activity. This perception has led to strict actions, including sanctions and lawsuits against the creators of services like Tornado Cash.
In his statement, Pritzker also noted that Swan Bitcoin has historically promoted privacy in the use of Bitcoin, including encouraging the use of mixers and supporting privacy-focused companies like Wasabi and Samourai. He highlighted that the company considers mixing cryptocurrencies to be a normal practice and a matter of privacy, not a criminal act.
How will Swan Bitcoin behave in the current scenario?
Swan Bitcoin’s decision is a response to the current political and regulatory climate, which has raised fears in the banking sector, with many banks avoiding cryptocurrency-related businesses. This situation forces Swan Bitcoin to follow FinCEN guidelines to maintain its relationship with partner banks.
In the advisory to customers, the company also suggested ways to oppose such restrictive policies and emphasized the importance of education about Bitcoin as a crucial step in this process.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.