FinCEN Withdraws Crypto Wallet Reporting Rules as EU Tightens Regulations
The US Financial Crimes Enforcement Network (FinCEN) withdrew two proposals on October 5, 2026, that would have required reporting duties for transfers to self-custodied crypto wallets and for mixers. The first proposal, dating back to December 2020, aimed to mandate records for transactions above $3,000 and reports for those over $10,000. The second, from October 2023, targeted mixers, seeking to designate them as primary money-laundering concerns.
FinCEN cited the reporting burden and concerns over deterring lawful use as reasons for the withdrawals. The agency referenced the White House digital asset report from July 2025, which emphasized the need for lawful users to transact privately on public blockchains. However, the underlying authority to create similar rules remains, meaning new proposals could still be introduced.
In contrast, the European Union is moving in the opposite direction. Regulation (EU) 2023/1113, effective since late 2024, requires crypto service providers to verify ownership of self-hosted addresses for transfers above 1,000 euros. Additionally, Regulation (EU) 2024/1624, set to apply from July 10, 2027, will prohibit anonymous accounts and dealing in privacy-enhancing coins like Monero.
While the US is rolling back surveillance on private transfers, the EU is tightening regulations, effectively ending certain private transactions through regulated providers. This divergence highlights the differing approaches to crypto regulation between the two regions.