Kevin O’Leary, a Shark Tank host and millionaire venture capitalist, said that cryptocurrency applications which interfere with the regulatory environment need to be clamped down, as stated by Cointelegraph. O’Leary also said that Tornado Cash and similar sort of services are causing hindrance to real institutional capital from entering the space.
According to Cointelegraph, in a discussion with Crypto Banter, O’Leary suggested that applications such as Ethereum-oriented cryptocurrency mixer Tornado Cash are a part of a
“crypto cowboy” culture which should get a place in the industry. Moreover, O’Leary is of the view that cryptocurrency needs a “rules-based environment” to attract real institutional capital into the digital asset industry, with much of that regulation needing to stamp out protocols such as Tornado Cash which enables users to conduct anonymous transactions, and potential engagement in criminal activity. O’Leary said that while institutional interest in the digital assets sector continues to increase, “they’re not going to touch it while crypto cowboys are riding the fence.”
Data from Cointelegraph emphasised that the United States government’s sanctioning of the Ethereum-based privacy tool influenced cryptocurrency figures who defended the desire for basic privacy rights on decentralised networks. Stefan George, co-founder, Gnosis, defended Tornado Cash focusing the on the protocol’s need to have privacy to Ethereum, and open-source software should be recognised as “an expression of free speech.” Patrick Collins, lead developer, Chainlink, spoke that the decision to remove Tornado Cash’s GitHub account is considered to be worse than sanctioning of a website
Moreover, Cointelegraph noted that Dutch financial crime authority the Fiscal Information and Investigation Service (FIOD), arrested a 29-year-old Tornado Cash developer who was suspected to be involved in money laundering through the protocol. According to FIOD, over seven million dollars have been flown through Tornado Cash’s smart contracts since its beginning in the year 2019.
(With insights from Cointelegraph)