After years of opposition to crypto mixers, the onchain services that obfuscate digital asset transactions, the U.S. Treasury Department now says they may have legitimate privacy uses as well as their much-trumpeted criminal applications.

In a report related to the implementation of the Genius Act, the Treasury acknowledged that mixing services can serve lawful purposes on public blockchains. These include shielding personal finances, business transactions and charitable donations from being publicly traceable. The department noted that privacy tools can coexist with compliance when properly designed, for example, through record-keeping or other safeguards.

“As consumers increase their use of digital assets for payments, individuals may want to use mixers to maintain more privacy of their consumer spending habits,” the Treasury noted in the report.

The mixers, which obscure the origin and destination of digital asset transactions by pooling users’ funds together, have long been controversial in Washington. In 2022, the Treasury’s Office of Foreign Assets Control (OFAC) blacklisted the Ethereum-based mixer Tornado Cash, accusing it of facilitating the laundering of billions in illicit crypto tied to North Korea’s Lazarus hacking group. The sanctions effectively barred Americans from using the tool and ignited one of the most contentious regulatory fights in crypto.

In 2025, the government removed Tornado Cash from the list following legal challenges and an appellate court decision questioning the Treasury’s authority to impose sanctions on open-source smart contracts. Although released on bail, Tornado Cash co-founder and developer Roman Storm still faces legal issues as prosecutors claim they have sufficient evidence to demonstrate he built features into the mixer knowing they would aid cybercriminals.

The report doesn’t abandon concerns about illicit finance. It highlights mixers as tools often used to obscure stolen funds and emphasizes the need for stronger anti-money laundering (AML) controls across digital assets. But it also states that privacy technology itself isn’t inherently illegal.

Beyond mixers, the report signals broader policy shifts. Treasury encourages Congress to clarify which decentralized finance (DeFi) actors should fall under AML obligations, explore digital-identity tools that enable compliance without excessive data collection, and consider new authorities allowing institutions to temporarily freeze suspicious digital assets.

Crypto exchange Bybit has reaffirmed its commitment to the Middle East amid escalating global conflict, announcing the appointment of a new country manager to increase its presence in the Middle East and North Africa (MENA) region.

Tensions in the Middle East escalated last month after the US and Israel launched strikes on Iran. In response, Iran retaliated against several neighboring countries, including the United Arab Emirates (UAE), the United Arab Emirates (UAE), where Bybit maintains a major regional presence.

Helen Liu, co-CEO of Bybit, said the company has no plans to scale back its Middle East operations in light of the conflict.

“Some companies are reassessing their Gulf exposure right now. We are doing the opposite. We are deepening our presence, our investment, and our commitment to this region,” she said.

“We continue to invest in local talent, regulatory compliance, and community partnerships. The UAE’s vision to become the world’s leading digital asset hub is not diminished by this crisis. If anything, the resilience this nation is showing only reinforces why we chose to build here.”

Cryptocurrencies are often used in times of crisis, as citizens look to preserve their assets amid fears of instability in traditional banking systems. 

Iran’s leading crypto exchange Nobitex experienced a sharp rise in withdrawals soon after strikes on Tehran.

Bybit appoints new MENA country manager

Derek Dai has been appointed the new country manager for Bybit in the MENA region, the exchange announced. His role will include overseeing market expansion, regulatory collaboration, institutional partnerships and localized product development.

Related: UAE central bank says financial system stable amid missile and drone attacks

Bybit said it has also implemented several measures to protect its UAE-based employees, including daily check-ins, real-time safety confirmations and relocation or travel support.

Dai said the Middle East is becoming a pivotal region for the future of crypto. Over the coming months, Bybit will focus on expanding access to the United Arab Emirates dirham and forging partnerships with banks and payment providers.

“Our priority is to deepen collaboration with financial centers such as the DIFC [Dubai International Financial Centre], and the DMCC [Dubai Multi Commodities Centre],” he said.

Adding that Bybit also wants to strengthen “the infrastructure that connects digital assets with everyday financial services and advancing the development of tokenized real-world assets that bridge traditional finance and the digital asset economy.”