In the past, coal miners would take caged canaries with them into the mines to detect toxic gases as they would be affected before the miners, essentially working as warning signals. However, in more recent times, a prominent software developer, Alexey Pertsev, was found guilty of money laundering and sentenced to prison. The tool he built, Tornado Cash, aimed to preserve online privacy but was deemed as a tool specifically intended for criminals due to its concealment and anonymity techniques.
This case serves as a concerning indicator of the erosion of liberal democracies worldwide, with financial surveillance measures continuously being reinforced despite the lack of evidence of their effectiveness. The fight against money laundering and terrorist financing has led to a collective hysteria, criminalizing the fundamental right to privacy. This shift is not limited to the crypto industry but affects everyone, with various democracies implementing invasive surveillance measures.
The involvement of the United States and European public authorities in targeting developers of technologies like Tornado Cash and Samourai Wallet highlights the increasingly worrying direction of anti-money laundering and surveillance measures. These actions are often based on misconceptions and unfounded paranoia, with little regard for the proportionality of rights limitations or technological neutrality.
Despite the lack of evidence and analysis on the risks of money laundering and terrorist financing involving cryptocurrencies, institutions like the Financial Action Task Force and the European Banking Authority have continued to push for more regulations without proper justification. The lack of data and in-depth risk assessments raises concerns over the validity of restrictions placed on crypto transfers and other related activities.
The implications of such arbitrary restrictions go beyond the crypto industry and touch on fundamental rights and freedoms in liberal democracies. By blindly following outdated regulations and standards set by international bodies, policymakers risk encroaching on individual privacy and autonomy. It is essential to reassess the justification behind financial surveillance measures and ensure that they align with democratic principles and the protection of fundamental freedoms.
