RT @lisalefeverLGO: 🚨 Larry Harmon, founder of mixers Helix and Coin Ninja, gets $60M fine from FinCEN for willful BSA violations
First Bitcoin “Mixer” Penalized by FinCEN for Violating Anti-Money Laundering Laws https://t.co/1rkI1MMdRp
And to zero in on a specific section from the Fincen document, see Section 4.5.1(b)
“An anonymizing software provider is not a money transmitter. FinCEN regulations exempt from the definition of money transmitter those persons providing “the delivery, communication, or network access services used by a money transmitter to support money transmission services.” This is because suppliers of tools (communications, hardware, or software) that may be utilized in money transmission, like anonymizing software, are engaged in trade and not money transmission.
By contrast, a person that utilizes the software to anonymize the person’s own transactions will be either a user or a money transmitter, depending on the purpose of each transaction. For example, a user would employ the software when paying for goods or services on its own behalf, while a money transmitter would use it to engage as a business in the acceptance and transmission of value as a transmittor’s or intermediary’s financial institution.”
jonas_hAuthor of 'Why cryptocurrencies'1 month ago
Decentralized mixing schemes or on-chain obfuscation aren't included in the money transmitter laws so Monero isn't affected.
Who could have thought that a service explicitly not designed for money laundering but completely perfect for it because it is designed to hide the origins of funds would end up being against anti-money laundering laws?
This is a $60 million civil penalty and finding of fact from FinCEN, the money laundering & terrorist financing authority. Harmon appears to still be facing up to 17.5 years of prison on federal criminal charges as well.