Circle CEO responds to sanctions: a major turning point in the history of encrypted finance

Original author: Jeremy Allaire

Original compilation: 0x9F, 0x214, BlockBeats

This article is based on the views of Circle CEO Jeremy Allaire on his personal social media platform, which is translated by BlockBeats as follows:

Yesterday, the U.S. Treasury Department designated sanctions against ETH addresses associated with Tornado Cash. Circle, a U.S. financial institution regulated by the requirements of the Bank Secrecy Act (BSA), together with our partner Coinbase, has restricted the movement of USDC funds to these sanctioned addresses.

It is likely that nearly all responsible registered virtual asset service providers have taken steps to prevent Customers transact with these addresses or face charges of knowingly evading U.S. sanctions compliance obligations, punishable by up to 30 years in prison.

This regulatory intervention is a major turning point in the financial history of the Internet and the development of blockchain— — A large government forces all parties to completely block or restrict the operation of open source software on the Internet.

This incident leads to questions about "Internet privacy security", "the future of public Internet digital currency ’ Asking these important questions. We have noted "privacy" and "security" tensions over policy issues< /a>. What happened yesterday is a realistic projection of this tension.

Also, I shared this blog post outlining the actions we have taken and suggesting some ways forward for the industry. In short, now is a critical moment for the crypto industry to pay more attention to major policy issues related to financial privacy.

Crypto and blockchain infrastructure reveal an open Internet of value Structures, payment systems, escrow settlements, risk management, and most fundamentally, privacy and security challenge the decades-old regulatory framework.

So far, policy efforts have focused on market regulation and Stablecoin issues, while global Efforts continue to strengthen anti-money laundering and counter-terrorist financing (AML/CTF) controls on digital asset operators and intermediaries.

However, the rapid growth of open source, self-running protocols is challenging policy makers everywhere . If we don't act now, the result will be more tough law enforcement action.

Next, Circle will call on Crypto industry leaders, associations and protocol developers to unite Work together to promote the legal framework and policy development to protect the privacy and security of users, while improving the financial integrity charter to deal with open source agreements.

This is very important to secure the future of DeFi and public internet digital currencies. It's not about any one organization, it's about everything we build and stand for together and the future we believe in.

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