{"id":33391,"date":"2022-08-15T00:50:38","date_gmt":"2022-08-15T04:50:38","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=33391"},"modified":"2022-08-15T00:50:45","modified_gmt":"2022-08-15T04:50:45","slug":"oleary-giving-up-tornado-cash-for-institutional-adoption-worth-it","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/oleary-giving-up-tornado-cash-for-institutional-adoption-worth-it\/","title":{"rendered":"O’Leary: Giving up Tornado Cash for institutional adoption worth it"},"content":{"rendered":"\n
According to Mr. Wonderful. more regulation is needed for crypto and “crypto cowboys” like Alexey Pertsev, the developer of Tornado Cash, should be sacrificed to bring stability to institutional inflows.<\/h5>\n\n\n\n
\"O'Leary:
O'Leary: Giving up Tornado Cash for institutional adoption worth it<\/figcaption><\/figure>\n\n\n\n

Shark Tank host and millionaire venture capitalist Kevin O'Leary said that Tornado Cash<\/a> and similar services are blocking real institutional money from entering the industry, therefore cracking down on crypto applications that “mess with the primordial forces of regulation” is required.<\/p>\n\n\n\n

O'Leary, also known as Mr. Wonderful, made the claim that tools like the Ethereum-based cryptocurrency mixer Tornado Cash are examples of a “crypto cowboy” attitude that has no place in the sector during a debate on Crypto Banter on Saturday.<\/p>\n\n\n\n

Instead, O'Leary believes that the cryptocurrency industry needs a “rules-based environment” in order to draw in real institutional capital. A large part of that regulation must target protocols like Tornado Cash\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, which allow users to conduct anonymous transactions and thus may be used for illegal activity.<\/p>\n\n\n\n

O'Leary maintained his position throughout the conversation regarding the detention of Alexey Pertsev, the man who created Tornado Cash, saying:<\/p>\n\n\n\n

\u201cAt the end of the day, it\u2019s okay to arrest that guy. Why? He\u2019s messing with the primal forces of regulation […] If we have to sacrifice him, that\u2019s okay, because we want to have some stability in that institutional capital.\u201d<\/p><\/blockquote>\n\n\n\n

Although institutional interest in the digital assets market is growing, the venture investor claimed that “crypto cowboys are riding the fence” and that “they're not going to touch it.” O'Leary stressed that there wouldn't be “stability in [\u2026] institutional capital” until we get rid of this junk, but he thinks the sector is gradually getting rid of the “cowboys”:<\/p>\n\n\n\n

\u201cI think we\u2019re getting to that stage now. Maybe we\u2019re in the third or fourth inning towards that, but I\u2019m tired of this crypto cowboy crap. I want to get involved in a regulated place where we can bring billions of dollars to work. I don\u2019t need to be a crypto cowboy, and I don\u2019t want to be one because I work in the regulated world.\u201d<\/p><\/blockquote>\n\n\n\n

But O'Leary's viewpoint runs counter to what many others in the area believe. Many prominent crypto personalities who supported the necessity for fundamental privacy rights on decentralized networks were incensed by the U.S. Government's approval of the Ethereum-based privacy tool last week.<\/p>\n\n\n\n

Stefan George, co-founder of Gnosis, was one of those speaking out in favor of Tornado Cash. He said that the protocol gives Ethereum<\/a> “much-needed anonymity” and that creating open-source software ought to be viewed as “an expression of free speech.”<\/p>\n\n\n\n

\n

2\/ The investigation of Zimmermann was closed after several years without filing criminal charges against him.

Meanwhile Zimmermann "decentralized" the knowledge by publishing the entire source code of PGP in a mass-printed book circumventing regulations.<\/p>— Stefan George \ud83e\udd89\ud83d\udcb3 (@StefanDGeorge) August 12, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

The removal of Tornado Cash's GitHub account, according to Chainlink Lead Developer Advocate Patrick Collins, is “far worse than sanctioning a website” since code is speech, and by doing this, the U.S. Treasury is infringing on the first amendment to the U.S. Constitution.<\/p>\n\n\n\n

\n

It's gotten MUCH worse.@TornadoCash<\/use><\/svg><\/span><\/a> Github accounts and codebase has been entirely removed.

This is much worse than just sanctioning a website.

Code is speech, so we are potentially violating the first amendment.

Paging lawyers @adamdavidlong<\/use><\/svg><\/span><\/a><\/p>— Patrick Collins (@PatrickAlphaC) August 8, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Anthony Sassano, a teacher of Ethereum, informed his 218,000 followers through Twitter that he had been temporarily barred from AAVE. This occurred after his address had been blacklisted for receiving 0.1 ETH via Tornado Cash from an unidentified source. Sassano continued by saying that the “primary conclusion I have drawn from recent events is that governments\/nation states are more concerned with Ethereum than Bitcoin.”<\/p>\n\n\n\n

\n

I think the main conclusion I have come to from recent events is that Ethereum is more of a concern to governments\/nation states than Bitcoin.

The implications of this will define the next few years of this industry.<\/p>— sassal.eth\/acc \ud83e\udd87\ud83d\udd0a (@sassal0x) August 14, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

A 29-year-old Tornado Cash d<\/a>eveloper was detained last week by the Dutch fiscal information and investigation service (FIOD) on suspicion of participating in the laundering protocol.<\/p>\n\n\n\n

Over $7 billion has reportedly passed through Tornado Cash's smart contracts since its launch in 2019 according to a Dutch regulatory organization. Following fresh allegations that the protocol had become widely used for money laundering operations, the U.S. Treasury imposed sanctions.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to Mr. Wonderful. more regulation is needed for crypto and “crypto cowboys” like Alexey Pertsev, the developer of Tornado Cash, should be sacrificed to bring stability to institutional inflows. Shark Tank host and millionaire venture capitalist Kevin O’Leary said that Tornado Cash and similar services are blocking real institutional money from entering the industry, […]<\/p>\n","protected":false},"author":38,"featured_media":33394,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10782],"class_list":["post-33391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-tornado-cash-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/08\/tornado-cash-sanction.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=33391"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/33394"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=33391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=33391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=33391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}