The U.S. Financial Crimes Enforcement Network has withdrawn two proposals covering certain self-custody wallet transactions and international cryptocurrency mixing. FinCEN announced the decision on October 5, 2026, and the withdrawal notices took effect on October 6.
The distinction matters for customers moving cryptocurrency off an exchange: these were proposed additional requirements, not rules that had already taken effect. The withdrawals end those rulemaking proceedings without introducing the planned obligations.
In its announcement, FinCEN said it had considered public comments and linked the decisions to the Trump administration's deregulatory agenda.
What the wallet proposal would have required
The first proposal, published in December 2020, concerned banks and money services businesses handling specified digital-asset transactions involving unhosted wallets. These are wallets from which a user can transact without a financial institution conducting the transaction.
It also covered certain wallets at foreign financial institutions outside the Bank Secrecy Act framework in jurisdictions identified by FinCEN. The proposal was therefore broader than transfers to personal wallets alone.
For covered transactions exceeding $10,000, or multiple transactions totalling more than $10,000 within 24 hours, institutions would have reported customer and counterparty information and verified the customer's identity. Covered transactions exceeding $3,000 would have triggered recordkeeping and customer-verification requirements.
FinCEN's published withdrawal says the agency will take no further action on that proposal. Those figures describe the withdrawn framework; they should not be read as a complete statement of the reporting rules that apply today.
Why the mixing proposal was withdrawn
The second action concerns an October 2023 proposal on international convertible virtual currency mixing. Mixing techniques can obscure a transaction's source, destination or amount.
The proposed special measure would have required covered financial institutions to record and report information about qualifying transactions suspected of involving mixing outside the United States. Information sought included wallet addresses, transaction identifiers and customer details.
FinCEN has withdrawn both the proposal and its associated finding that international mixing constituted a class of transactions of primary money laundering concern. Its withdrawal notice cites concerns that the definition was too broad, could discourage legitimate activity and could impose substantial reporting burdens.
The same notice leaves future action open. FinCEN says it will continue monitoring mixers for signs of money laundering, terrorist financing and other illicit activity.
What remains relevant to exchange customers
These withdrawals do not remove the wider Bank Secrecy Act framework. FinCEN's guidance on cryptocurrency business models explains that obligations depend on the activity a business performs, including whether it conducts regulated money transmission.
For customers, that means the announcement is not a promise of anonymous exchange access or an end to transaction checks. For businesses, it closes two specific proposals rather than replacing the compliance framework with a new one. FinCEN has also expressly preserved the possibility of responding to illicit mixing activity later.
For background on identity checks at exchanges, see our guide to choosing a KYC cryptocurrency exchange.
