Monday, 21 May 2018 08:20

Privacy Coins Feel the Heat with Increased Regulation

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More grim news for privacy coins* this week with another exchange discontinuing trading of certain anonymous coins due to pressure by Japanese regulators.

The latest exchange to announce a ban is Coincheck, which will be shifting all unsold Monero, Dash, Agur & Zcash privacy tokens on its exchange to fiat. 

By the 18th June 2018 all of these funds, not sold or withdrawn by users, will be converted into Yen.

Pressure has been mounting on exchanges that host privacy coins as government regulation begins to tighten on trading platforms. More regulation is not necessarily negative for the market as it does bring increased levels of protection for consumers and also helps to hold exchanges accountable. The crypto world needs more regulation, not less, for it to become increasingly mainstream.

We will be seeing further exchanges buckle to pressure from government agencies. What choice do they have? Lose millions of customers or delist privacy coins. Their decisions will be steered by their bottom line.

The anti-privacy coin sentiment might soon be spreading to the US markets next, putting even more pressure on the price and volume.

There will always be a place for privacy coins and in the long term decentralized exchanges might provide a safe haven for the technology but we will have to wait and see. For the near future, we see more exchanges following suit. 

*Privacy coins offer increased anonymity by obscuring details about the sender and receiver which makes tracking transactions very difficult.

More about Monero XMR

“Monero (XMR) is an open-source cryptocurrency created in April 2014 that focuses on privacy and decentralization that runs on Windows, macOS, Linux, Android, iOS, and FreeBSD. Monero uses a public ledger to record transactions while new units are created through a process called mining. Monero aims to improve on existing cryptocurrency design by obscuring sender, recipient and amount of every transaction made as well as making the mining process more egalitarian.[1]” Source: Wikipedia


"Dash (Digital Cash) is an open source peer-to-peer cryptocurrency with a strong focus on the payments industry. Based on the Bitcoin project, Dash aims to be the most user friendly and scalable payments system in the world[1].

In addition to Bitcoin's feature set, Dash offers instant transactions (InstantSend),[2] private transactions (PrivateSend)[3] and operates a self-governing and self-funding mechanism that fosters the creation of independent entities that serve the network[4]. This decentralized governance and funding system makes it one of the first decentralized autonomous organizations (DAO)[5] and the first DAO recognised by international law[6]. Source: Wikipedia"

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