Cook Islands Considers Controversial Cryptocurrency Regulation Bill

A proposed law targeting tainted cryptocurrency in the Cook Islands has sparked intense debate among experts and locals alike. The 2023 Tainted Cryptocurrency Recovery Bill, tabled in Parliament last December, aims to recover tainted cryptocurrencies. However, Ano Tisam, a respected cryptocurrency expert, has voiced strong criticism over the bill, arguing that it undermines human rights and fails to address the real channels of money laundering.

Bill’s Provisions Raise Concerns

According to Tisam, the bill’s provisions would allow for hacking into any account or system worldwide and compromise an individual’s right to due process and presumption of innocence. He worries that the legislation could freeze assets without adequate judicial oversight, disproportionately affecting vulnerable members of society.

Key Concerns:

• Allows for hacking into any account or system worldwide
• Compromises individual’s right to due process and presumption of innocence
• Freezes assets without adequate judicial oversight

Tisam’s Critique

“I think it’s terrible,” Tisam said. “They claim this is good for the people, but it tramples on their human rights. It would be like being guilty until proven innocent, which is unacceptable.”

Tisam argues that the bill does not address the root causes of money laundering and terrorism financing, instead focusing on cryptocurrencies as a scapegoat. He believes that the real issue lies with the opaque operations of banks, which should be scrutinized rather than cryptocurrency users.

Alternative Approach

Instead of regulating cryptocurrencies, Tisam advocates for promoting this emerging industry in the Cook Islands. “There are two major technologies emerging in the future – cryptocurrency and AI – and we want to be part of it,” he said.

Proposed Measures

The proposed bill includes measures aimed at addressing concerns about due process and judicial review. However, Tisam maintains that these safeguards will only be effective if expert advice is sought and considered during the legislative process.

Public Hearing

A special select committee sat on April 12 to hear expert testimony and evidence from submitters, including witnesses summoned to address submissions received for consideration. Six hearing sessions were held, featuring 17 witnesses and submitters. The committee has received 16 submissions regarding the bill.

Next Steps

The Cook Islands’ proposed cryptocurrency regulation law remains a topic of intense scrutiny, with concerns about human rights and due process at the forefront. As the country weighs its options, experts like Tisam will continue to urge caution and consideration for the potential implications of this legislation on local civil liberties.