Cook Islands: US-Backed Bill Raises Alarms over Cybercrime and Privacy Concerns
A proposed bill in the Cook Islands, named the Tainted Cryptocurrency Recovery Bill 2023, has raised concerns among legal experts and international observers due to its potential to legitimize hacking into foreign systems and accounts. This article provides a closer look at the bill and its implications.
Controversial Provisions
The bill, which was drafted with the involvement of Cook Islands-based lawyers and a US-based company, has been criticized for granting recovery agents the power to investigate and hack into accounts or systems worldwide suspected of holding ill-gotten cryptocurrencies. The Recovery Bill has been labeled flawed and unconstitutional by local legal authorities.
State-Endorsed Cyberpiracy?
During a Select Committee meeting, Cook Islands’ deputy solicitor general, David Greig, expresses his concerns regarding the bill, referring to it as state-endorsed cyberpiracy. Greig highlights the potential harm it could cause to New Zealand’s constitutional relationship with the Cook Islands and the risk of illegal entry into foreign systems, potentially considered terrorism in some countries.
Privacy and International Law
A UK-based barrister specializing in crypto asset recovery and Professor Robert Patman from Otago University, joining Greig, share concerns over the bill’s potential implications for privacy and international law. Patman warns of potential implications for New Zealand’s governance arrangements with the Cook Islands and the country’s relationship with the United States where the US-based company is believed to be based.
Red Flags
Several red flags have been raised regarding the bill. For example, cryptocurrency specialist AUT senior lecturer Jeff Nijsse points to the overly broad reach of the bill and potential violation of ethical hacking and privacy. Nijsse is surprised by the proposed ethical hacking provision, which could result in hacking and the installation of spyware if mere suspicion of owning tainted cryptocurrency exists.
Government Response
Principal of Drumcliffe, the US-based company involved in drafting the bill, claims it to be a Cook Islands Government initiative and intends to continue its role if the legislation is enacted. However, concerns persist that the bill could harm the Cook Islands’ financial services industry and infringe on international laws.
The bill’s approach to seizing supposedly tainted cryptocurrency faces skepticism from experts, with doubts about the realization of significant value. As the debate around the bill unfolds in the Cook Islands Parliament, stakeholders including the Cook Islands Financial Services Development Authority and experts from around the world voice their opposition and concerns. The Cook Islands Government, led by Prime Minister Mark Brown, has yet to respond to the growing criticism.
Summary
- A proposed bill in the Cook Islands, the Tainted Cryptocurrency Recovery Bill 2023, is criticized for allowing recovery agents to hack into foreign accounts and systems.
- Legal experts and international observers warn the bill could conflict with New Zealand’s constitutional relationship, violate privacy, and infringe on international law.
- Deputy Solicitor General David Greig and others raise concerns about potential harm to the Cook Islands’ financial services industry and relationships.
- The US-based company involved, Drumcliffe, claims the bill is a Cook Islands Government initiative and plans to continue its role.
- Experts debate the effectiveness and ethics of the bill’s approach to seizing supposedly tainted cryptocurrency.