Swiss financial crypto mediators have always required users to provide proof of ownership of an external wallet’s address since 2019. This was specifically implemented for BTC withdrawals and deposits to non-custodial wallets. One particular automated mechanism that these crypto companies used is the Address Ownership Proof Protocol, shortened to AOPP.
Last week, the popular producer of hardware wallets, Trezor, introduced the AOPP in its latest update. Users had to generate signatures that fit the mechanism’s standards. However, the company seemed to backtrack on its decision on January 28, announcing that the next update will remove the protocol “after careful consideration of recent feedback.”
This refers to the update’s backlash on social networking sites like Reddit and Twitter. Users expressed their concern about the possibility that Trezor’s implementation of the AOPP meant that it supports stricter regulation and doesn’t care about users potentially jeopardizing their privacy.
We will remove AOPP in our next Trezor Suite update in February.
More on our decision: https://t.co/hMDenbdjcg
— Trezor (@Trezor) January 28, 2022
Trezor published a blog post explaining their decision to remove the protocol, where it admitted that it “underestimated” the users’ reception of the feature. However, the company states that it doesn’t shy away from criticism and public scrutiny. The power of social media is clear in this scenario, as Trezor was quick o listen to its users and make the necessary changes.
Trezor also clarifies that it doesn’t agree with the AOPP’s regulation, specifically the potential data leak risks involved in strict verification processes like KYC when buying Bitcoin. The company states:
Other similar hardware wallets, such as Samourai Wallet, BlueWallet, and Sparrow Wallet, also followed in Trezor’s footsteps to remove the protocol from their systems.
Important: the regulatory burden the Swiss exchanges must comply with still exist
The onus is now on users to vote with their feet & refuse to use exchanges that force this regulatory overreach
Swiss exchanges should be fighting this overreach on your behalf like the Dutch did.
— Samourai Wallet (@SamouraiWallet) January 28, 2022
Some of the primary tenets of the crypto community include decentralization and freedom, which is why automated protocols like the AOPP are a big deal, even though they may not negatively affect users with non-custodial wallets. The users’ main concern is that implementing the AOPP may increase government surveillance and influence within the crypto world.
