By now you’re aware of the General Data Protection Regulation (GDPR). (If you run a website, business, or app and haven’t heard of the law, click here immediately.) So, today, let’s talk about how the international online privacy standard could collide with the burgeoning cryptocurrency market.
Crypto Security Industry Skeptical of GDPR
Regarding the relationship between the GDPR and cryptocurrency, Dave Jevans, CEO of CipherTrace — a company that “develops forensic tools and services for the Blockchain, Bitcoin, and cryptocurrency markets” — expounded:
“One problem that we’re seeing in addition to the criminal activity like drug trafficking and money laundering using cryptocurrencies is the theft of these tokens by bad guys.”
“GDPR will negatively impact the overall security of the internet and will also inadvertently aid cybercriminals. By restricting access to critical information, the new law will significantly hinder investigations into cybercrime, cryptocurrency theft, phishing, ransomware, malware, fraud and crypto-jacking.”
“So what we’re going to see is that not only the European market goes dark for all of us; so all the bad guys will flow to Europe because you can actually access the world from Europe and there’s no way you can get the data anymore.”
How Could the GDPR Affect The Cryptocurrency Market?
In a nutshell: some analysts and industry luminaries believe the GDPR will hinder law enforcement efforts to catch cryptocurrency thieves at a time when heists are on the rise.
Why do people think the new online privacy law will prove to be a problem? The argument goes, in the most basic terms, is that the law essentially shutters services like the “WHOIS” database —which listed contact information for domain registrants. And without that information, again, so the argument goes, law enforcement will have a harder time tracking people down.
On the other hand, people were already able to obscure their names from WHOIS databases, and ne’er-do-wells would have probably taken steps to cover their digital trails.
Questions? Chat With An Online Privacy Lawyer
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