How Do ‘Mixers’ or ‘Tumblers’ Relate to the Challenges of AML on Public Blockchains?
Mixers are services that pool and shuffle cryptocurrency from multiple users, breaking the on-chain link between the source and destination of funds. They are often used to obscure the origin of illicit funds, making it extremely difficult for AML transaction monitoring tools to trace the money.
This directly undermines the transparency that public blockchains offer for compliance purposes.