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2025-01-02 15:26:23

Super Testnet on Nostr: Are exchanges violating Europe's MICA law by listing ethereum? MICA says: ...

Are exchanges violating Europe's MICA law by listing ethereum?

MICA says: "[Exchanges] shall prevent the admission to trading of crypto-assets that have an inbuilt anonymisation function unless the holders of those crypto-assets and their transaction history can be identified by the [exchange]." (Title I Article 76 Section 3 - full text here: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32023R1114&qid=1735616578262)

Tornado Cash is built into Ethereum. It's a smart contract, which means it's just like a consensus rule in these respects: ethereum nodes must keep a copy of the smart contract; any eth user may use it; and as long as the majority of validators keep approving transactions that use it, the other validators must fall in line or fall out of consensus.

One might say "yeah but it's optional, so it doesn't count as built in." But aren't they delisting zcash and dash? The anonymization functions in *those* cryptocurrencies are optional too. Maybe there's some nuance about what "built in" means. I don't think the MICA law defines it. Perhaps a lawsuit should happen to get the courts to define it; possible outcome A: zcash and dash get relisted; possible outcome B: ethereum gets delisted.
Author Public Key
npub1yxp7j36cfqws7yj0hkfu2mx25308u4zua6ud22zglxp98ayhh96s8c399s