Chief Scientist at nChain, Self-proclaimed Satoshi Nakamoto and a Bitcoin SV proponent, Craig S. Wright, recently released an article in which he questions the security and privacy traits of Monero XMR.
The crypto token which is the 13th largest in the market based on market capitalization is popular for its privacy features as it is constructed on the cryptographic layer system. These cryptographic qualities of the token offer an untraceable exchange of funds and separate characteristics by default.
The article details on how Monero and other mixed coins are engaged in the activity of money transfers and money handling, which according to Craig makes them Money Service Businesses [MSBs] and should therefore follow the corresponding rules. The rules include:
“Complying with the anti-money laundering (AML) program, maintaining records, and issuing against the reporting requirements as defined in their jurisdiction. Compliance would include filing Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). Peer-to-peer exchange is covered under the anti-money laundering (AML) rules. Avoiding the requirements of the Bank Secrecy Act (BSA) in the US is not an option.”
The article also went further to state that:
“every node, software, wallet and person engaged in the transfer of funds – any funds including Bitcoin and cryptocurrencies, was acting as a money transmitter”.
Furthermore, money transmitters and any subsystems are required to adhere with the Bank Secrecy Act [BSA] law, a U.S law requiring financial institutions in the United States to assist government agencies in detecting and averting money laundering.
Riccardo Spagni’s Response
Lead maintainer of Monero and host of Magical Crypto Conference, Riccardo Spagni, also known as Fluffypony, is one of the best-known figures in the crypto community. Riccardo then tweeted a response with an analogy saying
“Parents: are you giving lunch money to your kids? According to Craig Wright you are a money transmitter and will go to prison! Welcome to law. Have a nice life.”
And implying that with Craig’s accusations even the most basic forms of money exchange is illegal and should be prosecutable by law. However, some proponents of BSV weren’t moved by the remark and tweeted in support of the article claiming that Craig S. Wright was simply pointing out the law.
Parents: are you giving lunch money to your kids? According to Craig Wright you are a money transmitter and will go to prison!
Welcome to law.
Have a nice life. pic.twitter.com/rgRMeLBe1S
— Riccardo Spagni (@fluffypony) June 6, 2019