Cook Islands Cryptocurrency Bill: Concerns of Global Hacking and Reputational Damage
The Cook Islands Parliament is currently engaging in a contentious issue with the proposed Tainted Cryptocurrency Recovery Bill 2023, causing alarm amongst local and international communities. The bill, drafted by law firms representing high-value debt collector Drumcliffe, has raised significant concerns over potential hacking capabilities and reputational damage.
Background
Justice Minister Vaine Mac Mokoroa expressed his surprise over the bill’s introduction into Parliament, admitting he had not been consulted. He stated, “I was not consulted with at all until about three or four days before the tabling. By then, what am I going to understand? I did not know anything about this bill at all.”
industry Reactions
Industry stakeholders have raised valid concerns regarding the potential consequences of the bill’s passing.
- Fear of global hacking: The bill could allow for hacking into systems worldwide, causing significant damage and threatening security.
- Reputational harm: The Cook Islands’ reputation could be negatively affected, potentially impacting other industries in the country.
Local companies, especially those in the offshore banking sector, are worried about the implications. The Cook Islands Crown Law was also excluded from the drafting process, leading to discussions and concerns.
Trustees’ Concerns
Trustees companies have shared detailed concerns with the select committee. Their primary concerns revolve around cybersecurity implications and potential repercussions.
- Constitutional issues: There are concerns about the constitutional impact on Cook Islanders, in terms of data protection and privacy.
- Impact on offshore trust industry: The proposed bill could potentially threaten the Cook Islands’ offshore trust industry.
Puai Wichman, founder, and CEO of Ora Trust Partners, is hopeful for the bill’s withdrawal, stating, “There are constitutional issues like whether Cook Islanders are safeguarded from being hacked under this bill and losing rights to justice.”
Defending the Bill
Despite the public outcry, the bill’s draftsman, Tim Arnold, defends its necessity. He emphasizes the difficulty in tracing and linking cryptocurrencies to illicit activities and argues that the bill could serve as significant benefits for the Cook Islands:
- Contribution to global efforts against cybercrime
- Acting as an information hub and safe storage site
Mac Mokoroa has outlined sections of the bill that raise concerns and demands further debate. Local companies fear an impact on their industry.
Prime Minister’s Confidence
Despite the controversy, Cook Islands Prime Minister Mark Brown remains confident that the legislation will align with the constitution and international efforts to combat cybercrime. The Cook Islands government is actively addressing stakeholders’ concerns.
New Zealand’s Minister of Foreign Affairs, Winston Peters, is closely monitoring the legislation’s progression.