Cook Islands’ Cryptocurrency Regulation Bill Sparks Concern Over Hacking Fears

A recent bill tabled in Parliament by Justice Minister Vaine Mac Mokoroa has raised concerns among industry members and experts that it could be used to hack into systems around the world. The Tainted Cryptocurrency Recovery Bill 2023 was drafted by Drumcliffe, a high-value debt collector specializing in international asset seizure, with assistance from at least two Cook Islands-based lawyers.

Concerns Over Potential Consequences

Industry stakeholders are urging a halt to the bill’s progression, citing its potential far-reaching consequences and lack of consultation during the drafting process. Crown Law officials were excluded from the drafting process, and Justice Minister Mokoroa revealed he was not consulted until just days before the bill was tabled in Parliament.

Potential Impact on Reputation and Industry

Several industry members and experts have expressed concerns that the bill could be used to hack into systems globally, damaging the country’s reputation. Local companies in the offshore banking sector are also worried about the potential impact on their industry.

• Ora Trust Partners founder and chief executive Puai Wichman has called for the bill to be withdrawn, citing constitutional issues and cybersecurity implications.
• Local companies in the offshore banking sector are concerned that their industry will be affected by this proposed bill.

Bill’s Purpose and Proponents

However, Tim Arnold, who drafted the bill, maintains that it is necessary to combat transnational crime, particularly in the realm of cryptocurrencies. He argues that the bill would allow for more effective recovery of seized assets and contribute to global efforts against cybercrime.

Government Response and International Monitoring

The Cook Islands government has responded to public outcry, stating that it is aware of the numerous concerns raised and solutions have been posed. Prime Minister Mark Brown expressed confidence that whatever law is passed will be in keeping with the constitution and laws, aligned with international agencies, and countries fighting cybercrime.

• New Zealand’s Minister of Foreign Affairs Winston Peters is also monitoring the situation, with officials tracking the legislation and discussing it with Cook Islands officials.
• The controversy surrounding the bill has sparked debate about the need for more transparency and consultation in the drafting process to ensure the country’s reputation is protected.