Investor and Shark Tank star Kevin O’Leary in an interview Crypto Banter announced the need to regulate cryptocurrency mixers like Tornado Cash.
In his opinion, such applications prevent a significant influx of institutional funds into the digital asset industry.
O’Leary spoke out against the “crypto cowboys” in the industry. He believes it needs a “rules-based environment” that will root out projects like Tornado Cash.
“I think we are approaching that stage. […] I want to participate in a regulated area where we can put billions of dollars into work,” the investor added.
According to O’Leary, the crypto industry “will have to sacrifice” the arrested Tornado Cash developer for “some kind of stability.” According to media reports, he is the co-founder of the service Alexey Pertsev.
Many industry representatives did not agree with the position of the TV star. Among them is the head of the bitcoin exchange Coinbase, Brian Armstrong.
“Sanctioning a technology (as opposed to a person or entity) seems like a bad precedent to me. This should probably be challenged. Could have many unforeseen consequences later on,” he explained.
Armstrong also added that the trading platform under his leadership will always follow the law.
Read about what Tornado Cash is and how it works in Cryplogger educational cards.
Recall that on August 8, the US authorities included the website of the mixer, as well as the associated cryptocurrency addresses, on the sanctions list. According to OFACsince 2019, at least $7 billion worth of funds have been laundered through Tornado Cash.
Circle subsequently blacklisted the service’s USDC wallet addresses following sanctions. Infura and Alchemy infrastructure platforms have limited RPC requests to Tornado Cash.
Decentralized derivatives exchange dYdX has suspended the accounts of users who previously interacted with the mixing service.
After entering the US sanctions list, Tornado Cash’s assets decreased by 15%.
Tornado DAO members called on the community to hire a team of lawyers to challenge the sanctions in court.
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