The company cited pressure from its banking and custodial partners as the reason for this policy change.
Swan Bitcoin announced new restrictions today regarding user accounts interacting with cryptocurrency mixing services.
In an email sent to users, Swan Bitcoin stated that accounts depositing or withdrawing Bitcoin directly from mixing services may be terminated. The company cited pressure from its banking and custodial partners as the reason for this policy change.
Swan Bitcoin's partners are responding to a recent proposal from the Financial Crimes Enforcement Network (FinCEN) that would require regulated financial institutions to report any transactions associated with mixing services. FinCEN claims mixing services help facilitate money laundering by criminals.
Swan Bitcoin CTO and co-founder Yan Pritzker acknowledged the company favors coin-mixing services. However, he said Swan must comply with its partners' requirements to be able to process fiat currency deposits and withdrawals for customers.
Some members of the crypto community have voiced outrage over Swan's policy shift. Samourai Wallet, which offers mixing features, criticized Swan for enforcing a proposal not yet set into law.
Swan's move comes as US regulators ramp up pressure against mixing services.
