Cryptocurrency flowing into “mixers” hits an all-time high

Mixers are silly. I explain why.

A good money laundering scheme replaces the source of money with plausible legal source.

Mixing is smurfing in traditional money laundering terminology. Smurfing is illegal.

In the US bitcoin mixers are classified as money transmitters by the Financial Crimes Enforcement Network (FinCEN). Therefore, they must register with FinCEN and apply for a state-by-state license to operate.

Anyone who puts crypto trough mixers, creates cryptocurrency that can be identified as laundered money. Financial crime units in police all over the world can track and follow public ledgers, detect mixing and tag crypto coming out. You may get rid of the source of the money, but you get a label "laundered money" instead.

That makes it harder to use and transfer into the real world business that must follow money laundering rules and regulations and accounting practices, at least in larger sums.

If try to transfer it into currency, the exchange may lock the money and you have to show up with documentation proving the source of money to proceed. Alternatively coins may be confiscated just because evidence of smurfing. All that is needed is a new policy or some interpol/FBI/etc. database that tags suspect flows and dresses.