A cryptocurrency tumbler, also sometimes called a cryptocurrency mixing service, is a type of service that helps to improve the anonymity of cryptocurrency transactions. When a user sends cryptocurrency to a tumbler, the tumbler will mix the coins with other users’ coins, and then send them back out to new addresses, effectively making it very difficult to trace where the coins originated. While cryptocurrency tumblers can be used for legitimate purposes, such as privacy protection or simply moving large amounts of cryptocurrency around without drawing attention, they have also been associated with illegal activities such as money laundering. As a result, there is some debate over the legality of cryptocurrency tumbling services.
In most jurisdictions, there is no specific law against cryptocurrency tumbling. However, because cryptocurrency tumblers can be used to obfuscate the origins of funds, some countries have taken a stricter stance against them. For example, in 2018, China’s central bank issued a notice outlawing cryptocurrency exchanges and ICOs, and specifically mentioned cryptocurrency tumbling services as one of the activities that would no longer be tolerated. Similarly, South Korea has also banned cryptocurrency tumbling services.
A cryptocurrency tumbler is a service that helps to obscure the origins of cryptocurrency funds by mixing them with other users’ funds. This makes it more difficult for outside observers to determine where the money came from and reduces the possibility of tracking cryptocurrency transactions. cryptocurrency tumblers typically charge a fee for their services.
One of the benefits of cryptocurrency tumbling is that it can help to increase anonymity for users. However, it is important to note that tumbling services cannot guarantee complete anonymity and there is still a risk that transactions could be traced back to their source. Crypto users who are concerned about being completely anonymous should consider using a mix of different privacy-enhancing techniques, including tumbling, tor, and VPNs.
In general, cryptocurrency tumbling is not illegal in and of itself. However, because it can be used for illegal purposes, some countries have taken action to crack down on cryptocurrency tumbling services.