Bankless The Death of Crypto Privacy? with Jake Chervinsky
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Aug 24, 2022 Jake Chervinsky, head of policy at the Blockchain Association, dives into the chilling impact of OFAC sanctions on Tornado Cash and what it means for crypto privacy. He discusses the controversial arrest of a developer and its implications for civil rights and freedom of speech. The conversation highlights the delicate balance between national security and individual privacy rights in the evolving landscape of decentralized finance. With insightful strategies, Chervinsky emphasizes the importance of advocacy and community support to safeguard digital rights in an increasingly regulated world.
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Surprising Sanction Approach
- Sanctioning Tornado Cash surprised many, as it targeted software, not an entity.
- This differs from previous concerns about privacy coins like Zcash, where delisting was considered.
North Korea's Impact
- Tornado Cash's usage by North Korea, unlike Zcash, likely triggered the sanctions.
- This raises concerns about the threshold of illicit use that justifies banning a tool.
Privacy at the App Layer
- Combining Ethereum's liquidity with Tornado Cash's privacy created a potent tool.
- This highlights the potential battleground for privacy at the application layer.