Circle says freezing wallets went against its beliefs on an open internet

USDC Stablecoin Issuer Circle Released statement To clarify its stance after freezing all affected ETH addresses U.S. Treasury DepartmentSanctions against Tornado Cash.

In compliance with post-ban regulatory requirements, Circle had to enable a “blacklist feature” to freeze blacklisted users. account. This means that all USDC funds held in wallets cannot be transferred on-chain indefinitely.

However, Circle said enabling a “blacklist feature” would go against the spirit of an open internet. Adhering to existing laws to stop money laundering is both a right and an obligation, so action had to be taken, the company said.

Circle sees this compromise as the price digital publishers must pay to remain compliant with existing U.S. law.

“Maintaining sanctions compliance through blocklisting is the reality of issuing digital assets within the regulatory boundaries of the United States and other countries.”

Stablecoin issuers are working with policymakers and key industry players to find a level playing field for compliance with existing laws without compromising individual privacy and freedom. increase.

Reactions after Tornado Cash Sanction

For many cryptocurrency users, financial privacy is all-important, and the U.S. Treasury Department’s ban on Tornado is a violation of their rights.

CoinCenter previously statement Expressing Concerns about Infringements on Liberty:

“All Americans who wish to use this automated tool to protect their privacy while trading online where their freedom is restricted without the benefit of due process.”

Ethereum co-founder Vitalik Buterin tweeted that he used Tornado cash to protect the privacy of recipients of Ukrainian war effort donations, reiterating its use for privacy protection. I acknowledged

I publish myself as the person who used TC to donate to this exact cause.

—vitalik.eth (@VitalikButerin) August 9, 2022

Nicholas Gregory, CEO of Privacy Pioneers at CommerceBlock, said: crypto slate, He explained that the ban may do little to help combat cybercrime.

“A ban on Tornado Cash makes little sense, because after all, no one can prevent people from using other mixer smart contracts or forking existing smart contracts. It doesn’t interfere with privacy.”