Tornado Cash, a cryptocurrency mixing platform, has been sanctioned by the US Treasury. Punishment can go unnoticed under claims of “I do not use Tornado Cash,” however, this oversight goes much further than that in the realm of privacy.
Punishment by the Ministry of Finance It is based on the fact that the platform is being used for illegal purposes, and yes, that is a reality. According to Chainalysis data, about 10% of the mixed funds in Tornado Cash come from theft or hacking. however, Collaborating with criminals is not the purpose of this platformbut to allow users to get more special coins.
a Blender Or mixer, a platform responsible for combining coins from different users in the same transaction, and “mixing” them with each other, making it difficult to keep track of them. Taking into account networks like Ethereum, on which Tornada Cash is built, or even Bitcoin, which is not private, they are “borrowed”. Anyone can view network activity from block exploreralthough there is no address associated with personal data.
But why is it important to have your own cryptocurrency? Because Privacy is a human right Recognized by the United Nations.
attack on privacy
Punishment for Tornado Cash It is not the ultimate result of persecution against privacy by countries. For some time now, governments have attempted to promote policies that violate privacy and anonymity in bitcoin and cryptocurrency transactions. One of the most intriguing recommendations is that of the International Financial Action Task Force (FATF), who lobbied states to force exchanges to declare title ownership. When registering, the user will need to verify that he owns an address on the cryptocurrency network, thus linking his personal data.
In this case, this type of action applies to centralized platforms. By putting pressure on the central entity that controls the exchange or the platform, measures can be taken against the privacy of users.
Tornado Cash is based on a decentralized platform, and there is no central entity regulating it, just a group of developers responsible for its maintenance. punishment then, Applies to all money that comes from there and addresses associated with Tornado Cash. This means that if you receive money, directly or indirectly, from Tornado Cash, you are already a “signed”.
Now, the ecosystem is already suffering the consequences of this punishment; Circle, the company behind the US dollar stablecoin (USDC), decided to freeze funds from addresses related to Tornado Cash, prompting the ecosystem to really consider whether they were uncensored. Because, from a certain point of view, how are USDC and Circle different from a bank? They can decide on other people’s money.
Can’t we have privacy?
In light of these situations, the question arises: Are you a good citizen as long as you give up your privacy? The United Nations itself says that privacy is a human right, but it is not an absolute right.Citing criminals in prisons whose right to privacy has been revoked, where guards can search their cells for security measures, are they then considered criminals of bitcoin and crypto scammers?
Now, it’s worth clarifying that these actions only apply to specific platforms, not users. However, the latter is the most harmful, because, from a legal point of view, if you use Tornado Cash, you are a punished criminal.
The use of cryptocurrencies does not require any kind of registration. There is no reason, within the bitcoin algorithm, for example, that requires knowing the person behind the address. For Bitcoin, we are all the same. This makes privacy turn from a right into a very precious asset, you should take care of it.
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