Global Cryptocurrency Regulation is Moving in the Opposite Direction of Privacy Coins Like Monero (XMR)
Sep 24, 2018
- Monero (XMR) is a privacy coin that shields the sending address, receiving address, and the amount of a transaction on its blockchain to provide true privacy to users of the cryptocurrency.
- Monero has seen a decline in average daily transactions since crypto exchange, Changelly, temporarily withheld XMR from some accounts with, “suspicious” transactions in relation to Know Your Customer (KYC) requirements earlier in September.
- The decision by Changelly to withhold XMR served as a wakeup call to investors, reminding them that global crypto regulation is moving in the opposite direction of the ideals of privacy coins
- As countries around the world continue to establish crypto regulatory framework and hold exchanges to higher standards, exchanges will be forced to investigate holders of Monero while temporarily withholding XMR from accounts - or they may stop trading Monero altogether.
- If crypto exchanges continue to circumvent anonymity provided by privacy coins to adhere to KYC requirements, will privacy coins be viable in the long-term?