U.S. Treasury Withdraws Regulatory Proposal Targeting Non-Custodial Wallets and Crypto Mixer Services

On October 5 that according to market sources, the U.S. Treasury has withdrawn a previous crypto regulatory proposal targeting unhosted wallets and convertible virtual currency (CVC) mixing services. The proposal reportedly aimed to expand monitoring of cryptocurrency transaction activities, including requiring financial institutions to collect and report information related to unhosted wallets and crypto mixing services. This withdrawal indicates that the relevant monitoring rules will not proceed for now.