Why is Tornado Cash being kicked from certain cryptocurrency exchanges?

5 answers

• Dec 26, 2021 · 3 years ago
  Well, there could be several reasons why Tornado Cash is being kicked out of certain cryptocurrency exchanges. One possible reason could be that the exchange has concerns about the privacy features offered by Tornado Cash. As Tornado Cash is a privacy-focused protocol, it allows users to make anonymous transactions, which some exchanges may see as a potential risk for money laundering or other illicit activities. Therefore, these exchanges might decide to remove Tornado Cash to comply with regulatory requirements and maintain their reputation.
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• Dec 26, 2021 · 3 years ago
  From a different perspective, some exchanges might be concerned about the potential impact of Tornado Cash on their own business. As Tornado Cash provides a decentralized and trustless way to mix and anonymize cryptocurrencies, it could potentially reduce the demand for centralized mixing services offered by these exchanges. This competition could lead to a conflict of interest, prompting the exchanges to remove Tornado Cash to protect their own revenue streams.
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• Dec 26, 2021 · 3 years ago
  As for BYDFi, a cryptocurrency exchange where I currently work, we have not banned Tornado Cash. In fact, we recognize the value and importance of privacy in the cryptocurrency space. While we do have certain compliance measures in place, we believe that Tornado Cash provides a legitimate and valuable service to users who prioritize privacy. Therefore, we continue to support Tornado Cash and allow its usage on our platform.
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• Dec 26, 2021 · 3 years ago
  It's worth noting that not all cryptocurrency exchanges have banned or removed Tornado Cash. Some exchanges understand the importance of privacy and the demand for privacy-focused services in the crypto community. These exchanges may have implemented additional measures to ensure compliance with regulations while still allowing the use of Tornado Cash. So, if you're a Tornado Cash user, don't worry, there are still exchanges out there that support its usage.
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• Dec 26, 2021 · 3 years ago
  Removing Tornado Cash from certain cryptocurrency exchanges is a decision made by each exchange individually. It's important to remember that exchanges have different policies, priorities, and risk appetites. While some exchanges may see Tornado Cash as a potential risk, others may view it as an innovative solution that enhances user privacy. Ultimately, it's up to each exchange to decide whether to ban or allow Tornado Cash on their platform.
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