Pushing illegal payments can put end-to-end encryption at risk.

Today we are going to talk about a little story that we are afraid will have a big impact one day. Encrypted messaging app Signal introduced the anonymous cryptocurrency payment method and the time it created for global regulators that organizations sought as an exception to eliminate end-to-end encryption.

A year ago, Platformer first announced that Problem had decided to add cryptocurrency payments to its platform. Signal CEO Moxie Marlinspike has been a consultant for a brand called MobileCoin, which is based on the Stellar blockchain and designed for anonymous payments such as cash. As Wired magazine explained in 2017, “The idea of ​​MobileCoin is to create a system that hides everything from everyone else.”

Last year, Marlinskpike said the problem had just started to "create research" around MobileCoin integration. "If you decide to pay for Signal, I'll try to think carefully about what to do," said Marlin Spike. "It's hard to make that perfect impression."

In fact, MobileCoin integration has already been done. As the frustrated staff told me at the time. In the spring, Light Show announced a joint test in the UK and quietly rolled it out worldwide in mid-November. Here's Andy Greenberg's review of Wired:

MobileCoin founder Josh Goldbard confirmed the timing of the announcement, saying it will lead to increased app usage in the cryptocurrency industry, with thousands of transactions per day now, up from twelve before the announcement. global beta release. Regarding Signal's total downloads report, Goldbard said, “There are now over 100 million devices worldwide that can activate MobileCoin and send end-to-end encrypted payments in less than 5 minutes. […]]

The signal itself does not respond to Wired's request for comment on the global rollout of the payment feature. However, in April last year, Signal founder Moxie Marlinspike explained that WIRED wanted to add paid features to its encrypted video calling and text messaging app, to suit competitors such as WhatsApp and Facebook. Messenger, while keeping the issues in the spotlight. Privacy protection applies to financial transactions. "I want to create a world where you not only hear [privacy] when you talk to a doctor by Signal, but also feel [privacy] when you pay a doctor by Signal," Malin Spike said at the time. Think of yourself when paying.

There's nothing ignorant about investing in messaging apps, and Signal isn't the only company adding cryptocurrency payments to chat apps. The company, formerly known as Facebook, has been working for years to develop new features and integrate with SamsApp and Messenger. . What sets Signal's efforts apart is the combination of end-to-end email encryption and privacy-enabled cryptocurrency designed to conduct all transactions anonymously.

Last year, current and former Signal employees said they were concerned about the impact this combination would have on their apps. They said the anonymous company could attract offenders, who in the past would be investigated. They said Signal's addition of anonymous payments was an unwarranted abuse, as end-to-end encryption was already facing international legal issues. And it may give lawmakers more ammunition to end encryption.

What I mean is: I support end-to-end encryption. Because in a world where observation is ubiquitous and authoritarianism is on the rise, we think the expansion of private communication really matters. But I also support financial protection protection and Know Your Consumer (KYC) policies, which are effective in combating terrorism, post-murder, and other excess disasters. For messaging apps to increase cryptocurrency payments, they must at least do so in a way that adheres to these rules.

I've heard that other proponents of end-to-end encryption have privately lobbied Signal to be more careful with their payment plans. However, Signal, which was funded by nonprofit organizations and relied on donations, moved on.

The question is how regulators will respond. India is working to enforce the rules to make all data transmitted over the internet "traceable", effectively blocking encryption. The WhatsApp veteran sued the Indian government last year for interference in governance, but the matter is still unresolved.

The EU is still considering ways to restrict or restrict any access, but not as strict as India. In the United States, the communication environment is at a standstill. Although there have been occasional calls for businesses to report a return to police, particularly after a major crime, lawmakers have not crafted legislation to address it.

However, the United States has linen protection laws and KYC rules. Currently, you cannot buy MobileCoin by US IP address. The risk, however, is that lawyers may still use existing laws to rely on access. It may rely first on encrypting problems, then on the ability to bypass the site.

Alex Stamos, who discovered the encryption when he was Facebook's chief security officer, said: "Signal and WhatsApp have protected end-to-end encryption from a variety of legal challenges (drugs, sale of CSAM) who could be harmed by the courts, the legislator and public agreement with a view to causing harm”.

Stamos predicts that a new era of crypto could come from state regulators such as the New York Financial Services Authority, taking advantage of existing regulations.

Stamos said, "Adding payments might provide the best opportunity to counter cryptocurrencies because the First Amendment did not prevent cash flow anonymity and is legal. It is important at the federal and state levels that payment procedures are followed," Stamos said. . , "He said. mentioned.

The signal does not respond to a feedback request. For MobileCoin, it is listed on the FAQ page of the website.

People and companies are not deprived of all financial resources and equipment. Outside of the United States, there is www.buymobilecoin.com, which uses best practices from global financial companies to prevent hackers from acquiring MobileCoin. Any third-party organization that buys, sells or trades MobileCoin will use its own standards and practices to identify individuals or sites seeking to buy MobileCoin.

The foundation that currently runs Diem (a cryptocurrency commonly known as Facebook) is committed to complying with financial protection laws. WhatsApp started trying cryptocurrency payments last month, but Diem is not yet available, but according to the curse of the project.

There are also many ways the signal can avoid conflicts with authorities. MobileCoin can add KYC functionality or issues can replace it with better results. However, the company said little to no plans to do both last year.

In this case, crypto proponents can only hope that the back of the Signal option does not further harm end-to-end encryption. Since the private messaging threat has already passed, the last thing we want is a high profile financial battle.

On the other side of cryptocurrency. "Crypto-based crime is reaching all-time highs in 2021, with illegal residency receiving $14 billion annually versus $7.8 billion by 2020."