CJ - Cryptocurrency Enthusiast
The head scientist at Chainalysis asserts that more time is needed before we can accurately gauge how the fines would affect Tornado Cash, a cryptocurrency mixer.
Cointelegraph questioned Chainalysis head scientist Jacob Illum and national manager for Australia and New Zealand Todd Lenfield about the effects of the Tornado Cash ban during a demonstration of the company's freshly released blockchain analysis software Storyline.
While the crypto mixer is still in use, Illum noted that more time was required to "watch what's occurring" and how the "world responds to that designation," adding that people are trying to figure out what to do now that the crypto mixer is no longer available.
“We've seen deposits into services offering comparable activities fall down, at least momentarily, since people are gauging like "what does this imply for me?", which makes them more hesitant and unsure about how to deal with Tornado Cash.”
Illum remarked a crop of what he terms "junior mixers" have emerged hoping to capitalize on the hole that Tornado Cash left. However, where some see challenges, some are obviously seeing an opportunity.
According to research released in August by the blockchain security company SlowMist, over 300,000 ETH, or around $380 million, or 74.6% of the stolen assets on the Ethereum network, were moved to Tornado Cash in the first half of 2022. The 30-day moving average of the total daily value received by crypto mixers hit a new record high of $51.8 million in April, according to data from Chainalysis.
Lenfield continued: "The quest for locations where there is liquidity, when it's fairly visible following things like the OFAC sanctioning of Tornado Cash, I think creates a very intriguing sector to keep a watch. If the liquidity isn't there, you basically dry off a lot of capacity.”
On August 8, the US Treasury Department approved Tornado Cash, which means that anyone who uses the mixer while residing in the US might face criminal or civil consequences. The Office of Foreign Asset Control added more than 40 bitcoin addresses that are allegedly linked to Tornado Cash to its list of Specially Designated Nationals (OFAC).
What happened with Tornado Cash shows that there is a need for trustworthy and transparent companies that operate in the blockchain world. This incident is historical; however, it does not seem to slow down the cryptocurrency movement in the world, which is growing day by day. As there are bad actors in this space, there are also good actors who are trying to push the best cryptocurrency aspects to the public. One of them is BCBitcoin – a cheap cryptocurrency exchange platform where you can buy and sell cryptocurrency with a selection of more than 180 different coins and a dedicated customer support team available every day of the week.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
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