Cook Islands: Concerns Mount Over Cryptocurrency Bill’s Potential Consequences

A proposed cryptocurrency bill in the Cook Islands has raised alarm bells among industry experts and stakeholders, who claim it could have far-reaching consequences for the country’s offshore banking sector and reputation.

The Proposed Bill

The Tainted Cryptocurrency Recovery Bill 2023 was tabled in Parliament by Justice Minister Vaine Mac Mokoroa. However, he revealed that he was kept out of the loop until just days before tabling. The bill was drafted by Drumcliffe, a high-value debt collector specializing in international asset seizure.

Concerns Over Cybersecurity Implications and Constitutional Issues

Industry members are urging a halt to the bill’s progression, citing its potential risks. Crown Law officials claim they were excluded from the drafting process, sparking concerns over cybersecurity implications and constitutional issues. Ora Trust Partners founder Puai Wichman expressed concerns over constitutional issues and the risk of Cook Islanders being hacked under the bill, losing rights to justice.

Defending the Bill

Tim Arnold, who drafted the bill, defended its necessity in combating transnational crime and claimed it would benefit the Cook Islands by contributing to global efforts against cybercrime. However, critics remain unconvinced, citing a “great deal of misinformation” surrounding the bill’s intentions.

Official Responses

Prime Minister Mark Brown has assured that any law passed will be in keeping with the constitution and aligned with international agencies fighting cybercrime. New Zealand’s Foreign Affairs Minister Winston Peters is also monitoring the situation, with officials from his office engaging in discussions with Cook Islands officials.

Calls for Withdrawal

The controversy has sparked widespread concern, with many calling for the bill to be withdrawn until further consultation and review can take place. Stakeholders argue that the lack of consultation and potential risks outweigh any benefits.

Key Points

• The Tainted Cryptocurrency Recovery Bill 2023 was tabled in Parliament by Justice Minister Vaine Mac Mokoroa.
• Industry members are urging a halt to the bill’s progression, citing its potential far-reaching consequences for the country’s offshore banking sector and reputation.
• Crown Law officials claim they were excluded from the drafting process, sparking concerns over cybersecurity implications and constitutional issues.
• The bill was drafted by Drumcliffe, a high-value debt collector specializing in international asset seizure.
• Critics remain unconvinced, citing a “great deal of misinformation” surrounding the bill’s intentions.