Digital privacy advocates are 'deeply concerned' about the Tornado Cash ban.
So, quick update: the crypto community are still pretty mad about the Tornado Cash ban.
If you missed our article last week, Tornado Cash is a privacy service that makes your crypto untraceable.
Which is great for those who don't want literally anyone with an internet connection, to be able to track where/how they spend their crypto.
Unfortunately, Tornado Cash also doubles as the ultimate money laundering tool...and the US government have since put the kibosh on it.
Here's why the crypto community are so mad about it:
If cryptocurrency is going to be the future of banking, there should be some right to privacy.
With blockchain technology, wallet addresses (aka crypto bank account numbers) and their holdings are publicly listed, all the time.
The easiest way to stay private, is to not share your wallet address.
But that's like saying, 'If you don't want anyone to know what's in your bank account, don't spend any money.'
If someone wants to send you crypto, they first need your wallet address (just like a bank account).
The difference is, once they have your wallet address, they can track how much money you have and how you spend it on something like Etherscan.
Think of all the transactions you make on a monthly basis - whether it's with friends, family or businesses...
They would all be able to track your income/spending.
There should be an option of privacy, and Tornado Cash provided that.
Here's what the community are doing to fight the ban:
On a larger scale...
Coin Center are looking to challenge the ban in court, arguing it violates the First Amendment.
On a smaller/scrappier scale...
Someone just processed a bunch of crypto through Tornado Cash and sent the washed cryptocurrency to a bunch of publicly known celebrity wallet addresses.
Any wallet owner that receives cryptocurrency from the service (post ban) can technically be charged with sanctions violations.
This move saw the likes of Jimmy Fallon, Logan Paul, and Coinbase CEO Brian Armstrong, all receiving funds from Tornado Cash.
...demonstrating how difficult it will be for the U.S. government to effectively enforce its ban on the mixing service.
Here's a potential solution:
A cryptocurrency that is private by default, but can be toggled to allow account histories to be reviewed, in the case of an audit.
(Just like a bank account).
