Beginning April 14, money services businesses in thirty California and Texas zip codes must report cash transactions of $200 or more to the U.S. Treasury. This directive aims to combat financial crimes, particularly those linked to drug cartels along the U.S.-Mexico border. Privacy advocates express concern over how this surveillance might extend to cryptocurrency transactions, although experts believe digital asset holders need not worry for now. Although the order specifically targets cash transactions, it raises alarms regarding potential privacy intrusions affecting lower-income individuals who often utilize these services. With questions about whether similar scrutiny could apply to crypto transactions, some believe the stringent cash reporting requirements may push clients towards using cryptocurrencies instead as alternatives. The rule’s practical implications suggest businesses could voluntarily report transactions under the threshold, effectively decreasing financial privacy. Furthermore, amid ongoing government scrutiny of privacy-focused projects in the crypto space, advocates stress that privacy should not be criminalized.

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