Swan Bitcoin, a California-based cryptocurrency exchange, has sparked controversy with its recent announcement to terminate accounts involved in mixer services. This move comes in response to increased pressure from banking institutions following the Financial Crimes Enforcement Network’s (FinCEN) proposal to tighten regulations on such transactions.
Swan Bitcoin, a well-known Bitcoin services platform, has stirred a heated debate within the crypto community by unveiling its new policies regarding mixer services. In a letter sent to its customers, Swan Bitcoin stated that accounts directly involved in transactions associated with cryptocurrency mixer services may face potential termination. The company attributes this change to the mounting pressure faced by banking partners influenced by a proposed rule from FinCEN, which aims to impose additional responsibilities on institutions facilitating mixer services.
Yan Pritzker, co-founder and CTO of Swan Bitcoin, shed light on the external pressures the company has been facing while explaining the decision. Pritzker emphasizes that Swan Bitcoin has maintained a tolerant policy towards crypto mixer services as a privacy-oriented service. However, he also notes that customers face challenges during fiat currency transactions, which require interaction with qualified custodians and banks. Therefore, he suggests that proactively avoiding risks is a more appropriate approach instead of facing investigations.
The cryptocurrency community strongly criticizes Swan Bitcoin’s decision, arguing that it contradicts the fundamental principles of the exchange. Samourai Wallet, a wallet offering mixer services, heavily criticizes Swan Bitcoin, accusing the exchange of acting as an enforcer of an unlegislated proposal.
Vlad Costea, the host of the Bitcoin Takeover podcast, also joins the chorus of criticism, describing Swan Bitcoin’s actions as “dystopian” and an attempt to promote an anti-Bitcoin conformity culture. Costea further adds:
As a European user, if I had access to Swan, I would immediately close my account on the exchange.