Regulations and exchange delistings put future of private cryptocurrencies in doubt
The core principles of cryptocurrency were based on financial independence, decentralization and anonymity. With regulations being the key to mass adoption, however, the privacy aspect of the crypto market seems to be in jeopardy.
In 2022, even though no particular country has come up with a universal regulatory outline that governs the whole crypto market, most countries have introduced some form of legislation to govern a few aspects of the crypto market such as trading and financial services.
While different countries have set different rules and regulations in accordance with their existing financial laws, a common theme has been the strict implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
A majority of crypto exchanges operating with a license obtained from the government body or government-affiliated bodies have discouraged any form of anonymous transactions. Even in countries where there is no particular law on privacy coins, there is a ban on private transactions over a certain threshold.
The governments of the United States and the United Kingdom have also demanded regulatory action against the use of coin mixing tools, a service used to obscure the origin of a transaction by mixing it with multiple other transactions.
Coinjoin, a popular crypto mixing tool, recently announced they would block illicit transactions amid-regulatory heat.
Related: Crypto mixers’ relevance wanes as regulators take aim
The recent delisting of Litecoin (LTC) by several crypto exchanges in South Korea owing to its recent privacy-focused MimbleWimble upgrade is another example of how the privacy aspect of the cryptocurrency is the first to fall on the road to regulatory acceptance. Apart from South
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