Since 2019, Swiss financial crypto brokers require proof of ownership of an external wallet address in order to withdraw bitcoins and enter them into undeposited clients’ wallets. One of the automatic mechanisms used for this is the Proof of Ownership Protocol, or AOPP.

Trezor Hardware Wallet introduced AOPP subscriptions as part of its latest update in January last week, which allows users to create signatures that comply with the AOPP standard used in some jurisdictions. On January 28, Trezor announced that it will remove this protocol in its next Trezor Suite update “after careful consideration of recent comments”.

Recent comments come from Reddit and Twitter users who were concerned that using AOPP demonstrated Trezor’s support for tougher regulation and ignored potential privacy losses.

In a blog post explaining the removal, Trezor admitted it had “underestimated how the feature was received”, but the company “wanted public scrutiny”. The fact that he listened to his users and reacted quickly, shows the power of social media.

The hardware wallet manufacturer said this is a violation of regulations related to AOPP, i.e. the risk of data leakage associated with using a robust identification process such as KYC or KYC to buy bitcoins. The company has set its intentions:

“Our only goal was to make it easier for users in highly regulated countries to withdraw funds, but we know that it can do more harm than good in the long run if this is seen as proactive compliance, which we do not agree with.”
Other hardware wallets such as Sparrow Wallet, Samourai Wallet, and BlueWallet have also decided to follow Trezor’s guide and remove the automated protocol.

Related: Engineer Hacked Trezor Wallet, Recovered $2 Million in “Lost” Cryptocurrency

Although the AOPP protocol may not directly or negatively affect non-custodial wallet users, decentralization and freedom are fundamental principles in the crypto community that values ​​privacy. The main concern is that the introduction of the AOPP may set a precedent for increasing government influence and oversight.

Source: CoinTelegraph