The UK's National Crime Agency (NCA) says the local authorities should regulate sophisticated mixing technology used by criminals also known as mixers. In an interview with the Financial Times, Gary Cathcart, Head of Financial Investigation at the NCA, said mixers can be used to "provide a 'layering' service, churning criminal cash, obscuring its origins and audit trail, similar to how a cash business might be used by criminals to legitimize cash through the banking system."
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However, Bálint Harmat, CEO of zkSNACKs, the company behind Wasabi Wallet, does not agree with that point of view. He says that NCA's statements do not "correspond to reality" as the alternative, which is bitcoin without security and fungibility, would lead to "disastrous unforeseen consequences."
"We are just a team of developers and economists who are working hard for a better future," Harmat added.
The comments come after CoinJoin, a semi-decentralized mixing protocol for bitcoin (EXANTE: Bitcoin), started blacklisting cryptocurrency tied to illegal activity. Being part of the Wasabi Wallet, the protocol from now on blocks cryptocurrency tagged with dirty crypto.
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