U.S. Treasury Department: Cryptocurrency mixers can serve legitimate privacy needs

Deep Tide TechFlow News, March 9 — According to Financefeeds, the U.S. Department of the Treasury acknowledged in its report to Congress, “Using Innovative Technologies to Combat Illegal Financial Activities Involving Digital Assets,” that cryptocurrency mixers can serve legitimate privacy purposes.

The report states that as consumers increasingly use digital assets for payments, individuals may want to use mixers to maintain transaction privacy. Legitimate users might utilize mixers to prevent sensitive information such as personal wealth, business payments, or charitable donations from permanently appearing on the public blockchain.

However, the Treasury also warns that non-custodial or decentralized mixers pose higher risks and are often used for money laundering and sanctions evasion. The report specifically mentions that North Korea-related cybercriminal groups have used cryptocurrency mixing services to transfer and conceal stolen funds. In contrast, custodial mixers, which can collect user identification information, provide law enforcement with greater visibility.