• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Sunday, June 4, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

SWIFT considered ‘neutral’ on sanctions; debate sparked on whether Ethereum is the same

August 22, 2022
in Altcoins
Reading Time: 3 mins read
A A
SWIFT considered ‘neutral’ on sanctions; debate sparked on whether Ethereum is the same
ShareShareShareShareShare

The Director of Research at Coin Center Peter Van Valkenburgh raised an interesting point on Monday when he tweeted a screenshot from the SWIFT website detailing the entity’s role in sanctions enacted by “national authorities.”

Comments on the tweet immediately compared the information to Ethereum’s role in processing transactions.

Send tweet. pic.twitter.com/82IRrRLbDR

— Peter Van Valkenburgh (@valkenburgh) August 22, 2022

SWIFT is a global payment messaging service that allows banks to communicate with one another concerning financial transactions. According to February 2022, SWIFT processes transactions between “4 billion accounts and 11,000 institutions in more than 200 countries.”

Van Valkenburgh’s tweet stated that SWIFT “does not monitor or control the messages that users send through its system.” Further, it articulated that”

“All decisions on the legitimacy of financial transactions under applicable regulations, such as sanctions regulations, rest with the financial institutions handling them… As far as financial sanctions are concerned, the focus of SWIFT is to help its users in meeting their responsibilities to comply with national and international regulations.”

The rest of the page on SWIFT’s website explains that “SWIFT is only a messaging service provider and has no involvement in or control over the underlying financial transactions.”

Interestingly, in response to the question “does SWIFT expel banks” the response states, “SWIFT is neutral.” However, it confirms that it “disconnected all designated Russian entities” pursuant to E.U. regulation in 2022.

Comparison to sanctions on Ethereum

The Ethereum network has been under scrutiny over the past week following U.S. sanctions on Tornado Cash, an application running on the protocol.

Ethereum handles transactions between 674,265 entities daily, with nodes running from over 64 different countries.

Projects such as Circle’s $USDC, Aave, Uniswap, and Balancer complied with the U.S. sanctions by either blacklisting addresses or removing access to the front-end GUI for users who had interacted with Tornado Cash.

However, over the weekend, it was revealed that Ethermine, the largest mining pool on Ethereum, is no longer processing blocks that contained Tornado Cash transactions. While this is within the right of any validator (either PoW or PoS), it is a step toward the censorship of Ethereum at a protocol level.

The role of a miner or validator on a blockchain is to process, secure, and verify transactions within the network. They are a core part of the network’s infrastructure, not an application built on the protocol.

CryptoSlate reached out to Ethermine for comment but could only reach mods on its Discord community. The mods assumed the decision was made to ensure compliance with the U.S. sanctions. However, if SWIFT’s model were to be followed, there may be an argument that Ethermine does not need to make such drastic changes.

Is Ethereum neutral?

Should Ethereum be considered a neutral entity with users being held liable for their own actions concerning sanctioned entities? SWIFT can stand behind its claim that “responsibility for ensuring that individual financial transactions comply with sanctions laws… rests with the financial institutions handling them.”

The argument can be expanded further to argue that Tornado Cash could be considered a neutral entity as the Tornado Cash protocol itself does not launder money, the users who use it make that choice.

The definition of a “financial institution” within a decentralized ecosystem is unclear. One of the most important aspects of crypto regulation is likely to revolve around confirming legal definitions of blockchain terminology. In the E.U., this is already underway and could frame the basis of crypto regulation in the future.

There are other means of laundering funds through privacy-first assets. Cash can be used easily to launder funds due to its in-built privacy mechanic in that it is a physical asset that can be moved without a trace. No sanctions are placed on the money itself if a criminal uses cash to launder funds. Therefore, why have all Ethereum addresses related to Tornado Cash been sanctioned?

There are no simple answers to these questions. However, it is clear that old laws are being applied to new technology, and there is a need for technologists and lawmakers to collaborate on this topic to ensure the free and fair development of decentralized networks.

Get an Edge on the Crypto Market 👇

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits


Credit: Source link

Related articles

Zero-knowledge scaling will take decentralized gaming to the next level

Zero-knowledge scaling will take decentralized gaming to the next level

June 4, 2023
Hollywood needs Web3, not vice versa

Hollywood needs Web3, not vice versa

June 3, 2023
ShareTweetSendPinShare
Previous Post

Ethereum Slides To $1,500 As Hype Around Merge Dies Down

Next Post

Korean Company Samsung May Launch Crypto Exchange: Report

Related Posts

Zero-knowledge scaling will take decentralized gaming to the next level

Zero-knowledge scaling will take decentralized gaming to the next level

June 4, 2023

Gaming is one of the fastest-growing subsectors of the web3 industry and its most resilient verticals, with funding remaining buoyant...

Hollywood needs Web3, not vice versa

Hollywood needs Web3, not vice versa

June 3, 2023

The following is a guest post from Andrea Berry, Head of Business Development at Theta.In the glimmering world of Hollywood,...

Don’t blame memecoins and degens for crypto’s credibility problem

Don’t blame memecoins and degens for crypto’s credibility problem

June 3, 2023

Crypto has always struggled with credibility among no-coiners – who point to the lack of intrinsic value, price volatility, and...

How Bitcoin could offer a safe haven in the face of a global inflation crisis

How Bitcoin could offer a safe haven in the face of a global inflation crisis

June 3, 2023

The post How Bitcoin could offer a safe haven in the face of a global inflation crisis appeared first on...

FTX files objection to Genesis after being snubbed in $0.00 claim estimate

FTX files objection to Genesis after being snubbed in $0.00 claim estimate

June 3, 2023

FTX and its associated debtors declared numerous objections to Genesis’s bankruptcy proceedings and recovery plans in a June 2 court...

Load More
Next Post
Korean Company Samsung May Launch Crypto Exchange: Report

Korean Company Samsung May Launch Crypto Exchange: Report

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Litecoin Trades Near Most Anticipated Level At $90! Here’s What Traders Can Expect Next

Litecoin Trades Near Most Anticipated Level At $90! Here’s What Traders Can Expect Next

May 23, 2023
Coinbase Incubated Base Network Sets Sights on Mainnet Launch: A Boon for Ethereum Layer 2 Ecosystem

Coinbase Incubated Base Network Sets Sights on Mainnet Launch: A Boon for Ethereum Layer 2 Ecosystem

May 25, 2023
CFTC issues digital asset clearing warning; agency member calls for rulemaking

CFTC issues digital asset clearing warning; agency member calls for rulemaking

May 30, 2023

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • Atomic Wallet hacked, users lose millions in crypto
  • BREAKING: Polygon partners FIFA and EA Sports to launch Nike NFTs to Games
  • Travel NFTs: A Web3 Revolution for the Industry

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$27,224.000.12%
  • ethereumEthereum(ETH)$1,904.770.11%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.000.05%
  • binancecoinBNB(BNB)$307.17-0.16%
  • usd-coinUSD Coin(USDC)$1.000.03%
  • rippleXRP(XRP)$0.531.11%
  • staked-etherLido Staked Ether(STETH)$1,903.600.25%
  • cardanoCardano(ADA)$0.3812531.13%
  • dogecoinDogecoin(DOGE)$0.0728250.43%
  • solanaSolana(SOL)$22.064.19%
  • matic-networkPolygon(MATIC)$0.90-0.18%
  • tronTRON(TRX)$0.081810-2.18%
  • litecoinLitecoin(LTC)$95.74-1.24%
  • polkadotPolkadot(DOT)$5.351.12%
  • binance-usdBinance USD(BUSD)$1.000.00%
  • shiba-inuShiba Inu(SHIB)$0.000009-0.27%
  • avalanche-2Avalanche(AVAX)$14.751.54%
  • daiDai(DAI)$1.000.11%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$27,251.000.17%
  • uniswapUniswap(UNI)$5.08-0.17%
  • chainlinkChainlink(LINK)$6.521.18%
  • leo-tokenLEO Token(LEO)$3.600.08%
  • cosmosCosmos Hub(ATOM)$10.801.51%
  • okbOKB(OKB)$46.00-0.43%
  • moneroMonero(XMR)$149.462.09%
  • ethereum-classicEthereum Classic(ETC)$18.20-0.06%
  • ToncoinToncoin(TON)$1.74-0.68%
  • stellarStellar(XLM)$0.092451-0.28%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • bitcoin-cashBitcoin Cash(BCH)$116.411.25%
  • internet-computerInternet Computer(ICP)$4.830.09%
  • filecoinFilecoin(FIL)$4.82-1.52%
  • true-usdTrueUSD(TUSD)$1.00-0.22%
  • lido-daoLido DAO(LDO)$2.31-1.17%
  • AptosAptos(APT)$9.282.56%
  • quant-networkQuant(QNT)$116.57-0.14%
  • crypto-com-chainCronos(CRO)$0.0621534.28%
  • hedera-hashgraphHedera(HBAR)$0.050943-0.15%
  • ArbitrumArbitrum(ARB)$1.23-1.45%
  • nearNEAR Protocol(NEAR)$1.640.18%
  • vechainVeChain(VET)$0.019992-0.20%
  • GGTKNGGTKN(GGTKN)$0.1121310.76%
  • apecoinApeCoin(APE)$3.160.96%
  • the-graphThe Graph(GRT)$0.128327-1.29%
  • algorandAlgorand(ALGO)$0.1529760.05%
  • the-sandboxThe Sandbox(SAND)$0.581.94%
  • eosEOS(EOS)$0.920.36%
  • paxos-standardPax Dollar(USDP)$1.00-0.07%
  • fraxFrax(FRAX)$1.000.18%