Swan Bitcoin to Block Accounts Interacting with Coin Mixing Services
Swan Bitcoin, a California-based Bitcoin services platform, announced recently that it would terminate accounts of users directly interacting with mixing services.
In a statement released over the weekend, Bitcoin-only accumulation platform Swan issued a warning to users engaging with Bitcoin mixing services, cautioning them that their accounts may face termination due to increased scrutiny from banks and custodians.
According to Swan, its banking and custodial partners will cease servicing clients directly interacting with bitcoin mixing services such as Wasabi, Samourai, and similar platforms. Users depositing or withdrawing funds directly to or from crypto mixing services risk having their accounts terminated by Swan’s financial partners, as per the warning.
Swan, while vehemently opposing the proposed rules, acknowledged that its financial institution partners have taken a stance against mixers.
This alteration comes due to the pressure exerted by Swan Bitcoin’s banking partners, responding to the recent introduction of a proposed rule by the Financial Crimes Enforcement Network (FinCEN). The proposed rule aims to impose new responsibilities on institutions facilitating transactions that include mixing services.
Yan Pritzker, co-founder and CTO of Swan Bitcoin, explained that while the company supports coin mixing as a privacy service, connecting with qualified custodians and banks is necessary for on-ramping customers with fiat. Rather than undertaking investigative work, the company opts to avoid risks entirely.
Recently we announced that some of the banks and qualified custodians that Swan works with have been freezing or terminating accounts involved in mixing Bitcoin. Today I’d like to help the industry get
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