Opinion: Excessive speculation that privacy coins will die

Author: Jarosław Adamowski

Translator: Summer

Source: Unitimes

CipherTrace, a cryptocurrency intelligence and blockchain security company, believes that since the regulators have not advocated a total ban on privacy coins (such as Monero, Zcash, etc.), and these cryptocurrencies are ready to comply with the infamous Travel rules, so the death of privacy coins Guess is greatly exaggerated. (Note: The Travel Rule refers to the regulations issued by the U.S. Financial Crimes Enforcement Network, which came into effect on May 28, 1996. The rule requires that in the transfer of specific funds involving multiple financial institutions, all relevant financial institutions need to move to the next Financial institutions pass specific information.)

CipherTrace said in its third quarter 2019 report on cryptocurrency anti-money laundering:

"Cryptocurrency users will eventually have to convert it into fiat currency and use it in the real world. This involves the need to exchange blockchain addresses with users at venues such as exchanges, P2P markets, Bitcoin ATMs, or other financial services companies. Accounts. "(The company also claims that 76% of black market transactions and ransomware use Bitcoin.)

According to reports on Tuesday, BitBay, a Poland-based cryptocurrency exchange focused on Central and Eastern Europe, has become another trading platform that will remove Monero (XMR), a privacy-focused trading platform. At the same time, on October 10, OKEx announced the withdrawal of Zcash (ZEC) and Dash (Dash).

In both cases, CipherTrace emphasized that the Financial Crimes Enforcement Network (FinCEN) and the Financial Action Task Force (FATF) of the US Treasury do not advocate a total ban on privacy coins as long as controls are in place and the risks associated with anonymity are reduced.

CipherTrace explained:

"This position is reflected in FinCEN's 2017 fine of $ 110 million for BTC-e (a now closed cryptocurrency exchange). The regulator did not specifically take action against BTC-e's use of DASH But because the exchange lacks proper money laundering controls while providing privacy growth features. "

Also, when it comes to Travel rules, things may be better than people think. This rule requires VASP (virtual asset service providers) to share customer information with each other so that an exchange can confirm. For example, when the platform sends 10 BTC to a user on another exchange, the customer Verified identity.

CipherTrace states:

"Many of the top privacy coins have issued statements about how they comply with the (Travel Rules)."

The company refers to the announcements of Monero, Zcash and Dash.

At the same time, according to a summary of the April 2019 Zcash Regulatory and Compliance Report, "In fact, VASP (virtual asset service provider) supports Zcash or users tend to trade Zcash, which will not affect VASP's ability to perform customer due diligence. … Zcash is designed to follow Travel rules. "

According to the CipherTrace report, only 32% of the world ’s top 120 exchanges provide private currency trading services, and 63% of these 32% exchanges are weak in user due diligence Or there are loopholes. See below:

[The copyright of the article belongs to the original author, and its content and opinions do not represent the position of Unitimes, nor does it constitute any investment opinions or suggestions.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Sun Yuchen used capital hegemony to control Steem, causing controversy, the integrity of stolen users' voting rights was questioned

Recently, in order to prevent capital power on the chain, Steem witness nodes jointly launched a soft fork. God V des...

Policy

Testifying in Court: SBF’s Crypto Circus Unveiled 🎪

On October 26, ex-FTX CEO Sam Bankman-Fried faced tough questioning from Assistant U.S. Attorney Danielle Sassoon beh...

Blockchain

Exchange 5 hotspot tracking: The relationship between platform currency and IEO is like stocks and futures

On April 26th, an online conversation on the theme of “Exchange Hotspot Tracking” was held on TokenClub...

Policy

FTX Hacker Strikes Again - This Time with Style!

The 72,000 ETH stolen from FTX last year has resurfaced for the first time since the hack, as transactions have emerg...

Opinion

Data Perspective on the South Korean Cryptocurrency Market Strong Growth of CEX and Obsession of Retail Investors with Altcoins

We will study data from centralized exchanges in Korea and explore the characteristics and trends of Korean investors.

Blockchain

Viewpoint | Exchange is the public chain platform

If 2019 is almost a stand-alone platform currency, let me think about " What is value capture? " and "...