A recent SN post talked about some developments w/ Swan in regard to their policies on mixing. Or more accurately, policies affecting the behaviors of their partners, and the implications for their own customers.

There is no anti-mixing law, or anti-mixing regulation, yet. The new proposed FinCEN rule does not make mixing a crime. It does, however, push for much more reporting. Banks and FIs operate on a gradient of risk. It is this behavior that leads to the decision to freeze or terminate accounts that mix. It is simply easier to do so than to do the investigative work and decide that such accounts are simply engaging in normal Bitcoin privacy behavior.

We are now starting to see this pressure come from the banking sector down into companies in our space. Game theoretically, this behavior is expected and obvious. Why should a bank have to do extra work to prove innocence when the government has been telling them for years that they don’t want to see mixing?

I thought this was a good response adding context to the situation. Interfacing with the system is a complicated beast, clearly.