The cryptocurrency bill presented in Parliament by Justice Minister Vaine Mac Mokoroa has raised significant concerns regarding its potential global implications. There are apprehensions that this legislation could be exploited for unauthorized access into systems worldwide.

Drumcliffe, a reputable debt collection agency specializing in international asset retrieval, enlisted the services of at least two lawyers based in the Cook Islands to formulate the Tainted Cryptocurrency Recovery Bill 2023.

Members of the industry have expressed unease due to the lack of consultation during the bill’s drafting phase, leading to heightened anxieties among stakeholders.

Calls have been made to pause the progress of the bill, citing the extensive repercussions it may have if enacted.

Even the Crown Law of the Cook Islands disclosed that it was not part of the bill’s formulation process.

Justice Minister Vaine Mac Mokoroa, the one who introduced the bill in Parliament, admitted to being excluded from the initial discussions.

“I was not involved in any consultations regarding this bill before its introduction in Parliament. It was only about three or four days prior to its tabling that I was informed,” Mokoroa revealed.

“I was left in the dark until then, making it challenging for me to grasp the full extent of its contents.”

Vaine Mac Mokoroa, the Minister of Justice, expressed concerns raised by industry experts regarding the potential cybersecurity threats posed by the bill, which could tarnish the country’s reputation on a global scale.

“The bill contains several elements that are worrisome and warrant thorough deliberation.

“Our local offshore banking entities are particularly alarmed, fearing the adverse impact this proposed legislation may have on their operations.”

Numerous trustee companies have voiced their apprehensions to the select committee overseeing the bill.

Documents reviewed by RNZ Pacific reveal the trustees’ apprehensions about the bill’s cybersecurity implications and its potential repercussions on the country’s reputation and offshore trust sector.

Puai Wichman, the founder and CEO of Ora Trust Partners, expressed hope for the bill’s withdrawal.

“There are constitutional concerns regarding the protection of Cook Islanders from potential hacking under this bill, jeopardizing their access to justice,” Wichman remarked.

“The risks associated with this bill are manifold, and its drawbacks seem to outweigh any perceived benefits.”

‘Dispelling Misinformation’

Contrary to the criticism, Tim Arnold, the architect of the Tainted Cryptocurrency Recovery Bill, defended his involvement by emphasizing the potential benefits it offers to the Cook Islands.

“There has been a proliferation of misconceptions surrounding the bill’s objectives. I firmly believe that this legislation could serve as a valuable tool in combating transnational crimes on a global scale.”

“The Cook Islands could reap numerous advantages from this initiative.”

With four decades of experience in drafting legislation in the Cook Islands, Arnold underscored the necessity of the bill in addressing transnational crimes, especially within the realm of cryptocurrencies, which pose challenges in tracing illicit activities.

He highlighted the inequity in the global asset recovery process, where only a fraction of seized funds is returned to victims, emphasizing the need for more effective procedures.

“This bill specifically targets cryptocurrencies involved in serious criminal activities.

“The Cook Islands was chosen due to the presence of a private sector entity equipped with the resources and expertise to track, trace, and confiscate crypto assets.”

Arnold emphasized the bill’s potential benefits for the Cook Islands in contributing to the global fight against cybercrime, positioning the country as an information hub and secure storage location for seized assets awaiting legal proceedings.

In response to public demands for the bill’s withdrawal, Prime Minister Mark Brown assured that any enacted law would adhere to constitutional principles, align with international standards, and support global efforts against cybercrime.

The Cook Islands government acknowledges the raised concerns and has proposed solutions to address them. New Zealand’s Minister of Foreign Affairs, Winston Peters, is closely monitoring the bill through MFAT officials in Rarotonga and Wellington, engaging in discussions with Cook Islands authorities, as stated by a spokesperson from his office.