USDC stablecoin issuer Circle released pareiškimas to clarify its stance after freezing all ETH addresses affected by the JAV iždo departamentas"s sanction against Tornado Cash.
In compliance with regulatory requirements following the ban, Circle had to activate a “blacklist function” to freeze the blacklisted sąskaitos. By implication, all USDC funds held in the wallets cannot be transferred on-chain indefinitely.
Circle, however, said that activating the ‘blacklist function” went against the ethos of an open internet. It explained it had to make the move since complying with existing law to stop money laundering is both a right and an obligation.
Circle considers the compromise as a price digital issuers have to pay to remain compliant with existing laws in the US.
“Maintaining compliance with sanctions laws through block lists is a reality of issuing a digital asset within the regulatory perimeter of the U.S. and other countries.”
The stablecoin issuer is looking to work with policymakers and key industry players to find a level playground to abide by the existing laws without sacrificing individual privacy and freedom.
Reactions trailing Tornado Cash Sanction
For many crypto users, financial privacy is all important and the US Treasury’s ban on Tornado is a violation of their right.
CoinCenter earlier released a pareiškimas expressing concern over liberty violation:
“All Americans who may wish to use this automated tool in order to protect their own privacy while transacting online who are having their liberty curtailed without the benefit of any due process.”
To reiterate its use for privacy preservation, Ethereum Co-founder Vitalik Buterin in a tweet admitted to having used Tornado cash to protect the privacy of the recipients of his donation to Ukraine’s war efforts.
Pasirodysiu kaip žmogus, naudojęs TC aukodamas būtent šiam tikslui.
- vitalik.eth (@VitalikButerin) Rugpjūtis 9, 2022
CommerceBlocks privatumo pradininkas generalinis direktorius Nikolajus Gregoris a pareiškimas į CryptoSlate, explained that the ban may do little in combating cybercrime.
„Draudimas „Tornado Cash“ neturi prasmės, nes galiausiai niekas negali užkirsti kelio žmonėms naudotis kitomis išmaniosiomis maišyklės sutartimis arba sunaikinti esamas. Tai netrukdo nei elektroniniams nusikaltimams, nei privatumui.
Source: https://cryptoslate.com/circle-says-freezing-wallets-went-against-its-beliefs-of-an-open-internet/