Tornado Cash sanctions as the beginning of the end of privacy coins?

[Oister]

Recent U.S. sanctions against cryptocurrency mixer Tornado Cash have sparked a debate within the crypto community on whether the ban compromises users’ ability to operate anonymously.

Earlier this week, the Treasury Department imposed sanctions against Tornado Cash for helping hackers launder over $7 billion worth of virtual currency. The agency said the mixer service allowed cyber criminal groups, including North Korean-backed hackers, to use its platform to launder the proceeds of cyber crimes.

Does that mean that all the privacy coins will be banned and regulated? Even those having own no KYC decentralized exchanges?

 

[JAck745]

Hmm, I quite admit that the government of some countries will try to restrict these coins in some way. But, probably, anonymous exchanges are a really good solution.

 

[Oister]

I think if some coins are based on public chains they can really be banned as each transaction can be tracked and lead to a concrete user. No?

 

[JAck745]

Hmm, yes, I agree with you. In general, I believe that the use of any personal data in cryptomeria is completely unacceptable. This is my point of view.

 

[Oister]

How do you imagine that? Most of the financial operations sooner or later require usage of personal data. Even in case with crypto. That's why privacy coins are x10 important.

 

[JAck745]

You are right, but I believe that this is always associated with great risks. Cyber criminals are becoming more sophisticated. Therefore, as you correctly noted, the privacy coins are especially important at the moment.

 

[Oister]

Cyber criminals will always find a way out no matter what will be banned or regulated. It's not a real life when you can be tracked easily. In internet there are dozens of ways how to hide yourself. Even with crypto, some privacy coins couldn't be regulated, no matter what sanctions will try to affect it.

 

[JAck745]

How does that work? It seems to me that sooner or later it comes to the stage when you have to get your money and disclose your identity, no?

 

[Oister]

If you think so, then tell me, have you heard of online crypto payments, crypto mixers, VPN, proxy and other stuff?

 

[JAck745]

So you believe that most of the crypto users will spend their time trying to hide their identities, when they simply need to get their money back as soon as possible? I don't believe in it. So all of us are under the control.

 

[Oister]

Of course they will. And it doesn't require so much time as you think. At least the most easy way to withdraw money is to get them in cash from the exchanger. In each city there is a person you can meet, make a transaction and he will give you cash. You remain anonymous for authorities?

 

[JAck745]

hmm, this is quite possible, but I still don't quite understand whether it is possible to remain completely anonymous even in the world of cryptocurrencies? More precisely, it seems to me at the moment that the only way is decentralized projects and the privacy coins.

 

[Oister]

Not all the privacy coins will provide you 100% anonymity + you'll have to move them somehow, store somewhere and withdraw. It seems to me that you're too new to all this world, so it's not my job explaining all the steps to do in order to remain anonymous. There are tons of such information around you.

 

[JAck745]

Well, actually, I didn't say that absolutely everything in the world of privacy coins are absolutely anonymous, plus I also mentioned decentralization. It is also very important to understand that some questions, for example, rhetorical ones, do not always need to be answered.

 

[JAck745]

Is it correct that there will be no need to comply with the KYC policy?

 

[Oister]

Exactly, everything that is connected to Utopia P2P doesn't require any kind of KYC as its main aim is to provide full anonymity and privacy to the users. So it would be nice to see more partners.

 

[JAck745]

I think they have a great future. People increasingly want ways to send and receive payments without the fear that their transaction histories are being tracked or that financial information may be compromised.

 

[Oister]

Privacy coins mostly used for money laundering purpose or another bad things yet sometimes people are also using it to keep their identity or make others unable to trace them. You shall not feel surprised to see that if government was also targeting it as well. The fact that if these days everything related with anonymity is always being used for illegal activities. That's why government was putting their eyes on it.

 

[JAck745]

Ultimately, their advantages outweigh the risks. The future of privacy will thrive in an ecosystem where there’s no additional cost or barrier for a law-abiding citizen to exercise their right to privacy.