The subset of digital currencies, called private coins, has often made it difficult for authorities to deal with criminal activities.
Cryptocurrencies , such as Monero , Zcash ,and Dash , allow transactions to be made in a way that makes it difficult for exchange platforms to comply with new international guidelines to prevent illegal activities related to cryptocurrencies.
Some exchanges find it easier to stop supporting trading in specific cryptocurrencies than to comply with new regulatory requirements for risk. In August, Coinbase UK stopped supporting Zcash. A few days ago, OKEx OKEx Korea stopped supporting Monero, Dash, Zcash, ZCache, Horizon, and Super Bitcoin.
One researcher said this is preventing privacy coins from existing. He predicts that other exchange platforms will also stop supporting these cryptocurrencies in the future.
This could lead to a major problem in the cryptocurrency market. The value of the coins has dropped significantly. Monero has seen a 30% drop, while Dash has fallen by 40% and Zcash by 50%.
Privacy coins have been a hot topic of discussion for a long time. Europol has dealt with Monero, Zcash and Bitcoin several times due to use in criminal activities. Criminals take advantage of the fact that cryptocurrencies cannot be easily traced and use them for fraud . This means that they can be used for very serious crimes, such as for the financing of terrorist acts.
“There is potential to detect some privacy coins, but there are certainly big obstacles created by design,” said one researcher.
The development team behind Monero said that there is a feature (view keys) that allows users to track transactions. So there is a way to control it.
Both Monero developers and developers of other cryptocurrencies state that they can fully comply with the rules of the Financial Action Task Force (FATF).
“Dash is identical to Bitcoin and is 100% capable of meeting the requirements,” said Ryan Taylor, CEO of Dash Core Group Inc.
Zcash developers emphasize that their cryptocurrency has a feature that many other currencies do not have. The information of the beneficiary and the sender can be attached to transactions. Therefore, it works in accordance with the new FATF rule.
One Zcash supporter said: “I think it’s more compliant with FATF recommendations than most cryptocurrencies out there.” He also said that exchanges could require users to use transparent Zcash addresses and not opt for additional securitythat offer more privacy.
Privacy coins are still very popular, and their supporters say that the government should not get too involved in this area.
A few days ago, Binance, the largest exchange platform, announced that it would support Monero, Zcash, and Dash. Binance is based in Malta, which is a member of Moneyval, an anti laundering affiliated with the FATF.
The FATF will monitor whether its member states are implementing its new regulations. Failure to comply with them could lead to the closure of exchange platforms.
