Edward Snowden, a well-known whistleblower and vocal supporter of cryptocurrencies, recently took to social media to urge Bitcoin developers to prioritize privacy in the wake of the U.S. government cracking down on crypto mixers. In a post on X, Snowden emphasized that time is running out to implement privacy solutions at the protocol level and issued a final warning to Bitcoin developers to address this issue. This warning comes as zkSNACKs, the developer of Wasabi Wallet, announced the closure of its Coinjoin service due to a lack of regulatory clarity in the U.S.
The closure of zkSNACKs’ Coinjoin service reflects the broader regulatory crackdown on companies offering crypto mixers, which are designed to obfuscate the source of crypto transactions and make them harder to trace. Last year, the U.S. government charged the founders of crypto mixer Tornado Cash with money laundering, operating an unlicensed money transiting service, and sanctions evasions. Additionally, the DOJ recently arrested the founders of crypto mixer Samourai Wallet on similar charges, raising concerns in the crypto community about potential regulatory enforcement actions targeting non-custodial crypto services.
Snowden criticized the DOJ’s legal action against the Samourai Wallet founders and stressed the need to further privatize cryptocurrencies to ensure financial privacy. He warned that making privacy exceptional could lead to criminalization of privacy measures, highlighting the importance of making money private by default. Snowden’s stance on privacy in cryptocurrencies is influenced by his own experiences with privacy issues, having leaked highly classified information from the NSA in 2013. He has consistently defended digital assets and referred to Bitcoin as the most significant monetary advance since the creation of coinage.
Snowden’s call for prioritizing privacy in cryptocurrencies underscores the growing regulatory pressures faced by the industry, particularly in the U.S. where the government is intensifying efforts to crack down on crypto mixers. The challenges posed by regulatory uncertainty and legal actions against crypto services highlight the need for developers to address privacy concerns at the protocol level. Failure to take action on privacy could have far-reaching consequences for the crypto industry, as governments around the world seek greater oversight and regulation of digital assets.
As debates over privacy in cryptocurrencies continue to evolve, Snowden’s warning serves as a reminder of the urgent need to prioritize privacy at the protocol level. Developers, regulators, and the crypto community as a whole must work together to find solutions that balance privacy with regulatory compliance, ensuring that digital assets can continue to thrive in a changing regulatory landscape. Ultimately, the future of cryptocurrencies may depend on how effectively privacy concerns are addressed and integrated into the core protocols of popular cryptocurrencies like Bitcoin.
