Ban anony­mous cryp­tocur­ren­cies, says French na­tional as­sem­bly's fi­nance head

Sun.Star Pampanga - - TECHNEWS! -

T he Fi­nance Com­mit­tee of France’s Na­tional As­sem­bly re­cently put to­gether a re­port (PDF) on crypto as­sets and blockchain tech­nol­ogy. The com­mit­tee's re­port in­cludes a for­ward from the com­mit­tee's pres­i­dent, Éric Wo­erth. In this in­tro­duc­tory por­tion of the re­port, Wo­erth claims it would be ap­pro­pri­ate to pro­pose a ban on ac­tiv­ity re­lated to cryp­tocur­ren­cies built with the goal of pro­vid­ing greater lev­els of anonymity to users.

Wo­erth’s Com­ment on Anony­mous Cryp­tocur­ren­cies

Be­fore get­ting into the is­sues as­so­ci­ated with pri­va­cyfo­cused cryp­tocur­ren­cies, Wo­erth briefly men­tioned some of the chal­lenges cre­ated by the ex­is­tence of cryp­tocur­ren­cies for reg­u­la­tors and law­mak­ers.

“We must be aware of the prob­lems that [cryp­tocur­ren­cies] can pose in terms of fraud, tax eva­sion, money laun­der­ing or fraud, or en­ergy con­sump­tion,” reads Wo­erth’s open­ing re­marks.

“It would also have been ap­pro­pri­ate to pro­pose a ban on the dis­sem­i­na­tion and trade in [cryp­tocur­ren­cies built] to en­sure com­plete anonymity by pre­vent­ing any iden­ti­fi­ca­tion pro­ce­dure by de­sign,” Wo­erth later adds. “This is the case for a cer­tain num­ber of [cryp­tocur­ren­cies] (Monero, PIVX, Deep­Onion, Zcash...) whose pur­pose is to by­pass any pos­si­bil­ity of iden­ti­fy­ing the hold­ers. To date, reg­u­la­tion has not gone that far.”

The ex­tent to which Wo­erth would like to see these anonymity alt­coins banned is un­clear in the text. These re­marks could be re­fer­ring to a com­plete ban on the use of these bit­coin al­ter­na­tives or some­thing less se­vere like dis­al­low­ing ex­changes from list­ing them for trade.

On a re­lated note, the Win­klevoss Twins re­cently stated their view that reg­u­la­tors are more com­fort­able with Zcash than Monero when it comes to cryp­tocur­ren­cies fo­cused on pri­vacy and anonymity.

Wo­erth’s rhetoric re­gard­ing anony­mous cryp­tocur­ren­cies did not ex­tend to the greater blockchain and crypto as­set ecosys­tem. In this way, Wo­erth is mak­ing the point that only the parts of this new tech­nol­ogy that are ex­plic­itly prob­lem­atic for law en­force­ment agen­cies should be tar­geted with bans.

“The dis­tinc­tion be­tween the dif­fer­ent uses of [cryp­tocur­ren­cies] must con­tinue, to es­tab­lish a finer and more pre­cise reg­u­la­tion pro­tec­tor of the gen­eral in­ter­est, as well as the pri­vate in­ter­est of the en­trepreneurs of this do­main,” writes Woedeep­rth.

The re­port it­self rec­om­mends an in­ter­na­tional reg­u­la­tory frame­work at the points where crypto as­sets and the tra­di­tional fi­nan­cial sys­tem meet, ad­ding that phys­i­cal cash is still king in terms of crim­i­nal fi­nances.

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