Privacy Coins tests the convenience of crypto exchanges with compliance

Privacy Coins tests the convenience of crypto exchanges with compliance


Cryptocurrency industry cypherpunkian Strength will be tested as governments and regulators are finger-pointing privacy tools that may enable criminals to do bad things – as well as ordinary people who do ordinary things.

News Leadership: Seven symbols are It is scheduled to be written off On September 19 of the top 10 exchanges, Huobi Global, which on Monday sparked a shudder in the industry as it cited compliance with the “latest financial regulations” as a just reason.

  • Token issuers who spoke with Axios expressed disappointment. Someone said he would fight the decision.
  • Exchanges FTX, Binance, Kraken, OKX, Coinbase, as well as Huobi Global declined to comment.

why does it matter: The “do it yourself” and “don’t ask for permission” philosophy is a feature of the crypto industry, not a bug.

  • However, the question of whether tools like Tornado Cash can help bad actors evade government sanctions has the cryptocurrency industry rolling on its own, regardless of whether it leaves customers in a bind.

Between the lines: Huobi’s case centers on Monero, Zcash, Dash, Firo, Decred, Verge and Horizen, which have a combined market capitalization of $5.5 billion.

  • Some privacy features promote their tokens more than others, so we will avoid broadly categorizing them as “privacy coins.” We will call them the “Lucky Seven”.
  • Monero’s XMR is the largest with a market capitalization of $2.5 billion, and – along with others named – it has privacy-enhancing features to anonymize the identities of the parties to the transaction.

What is happening“I spoke with Huobi before delisting Monero and other assets, and they indicated that South Korea had pressured them to delist these assets around the world,” Justin Ehrenhofer, of Cake Wallet, a crypto wallet software focused on Monero, told Axios.

  • “This speaks to Huobi’s dependence on South Korea.”

recovery: I remember the Kraken cross off Monero privacy coin in the UK late last year.

  • “Unfortunately, we have to Choose our battles “And look for the broader business in the country,” Kraken president Jesse Powell said at the time in response to customer annoyance on the Reddit chain.
  • These vague regional regulatory directives seem to be lost on crypto clients, with one Asks On Reddit last year: “Can anyone tell a simple person why Monero and some cannot be traded on Coinbase?”

what are they saying“Privacy is a fundamental requirement for any currency to be useful, so it is unfortunate that some exchanges are seeing this as a problem,” Jonathan Zeptini, head of international operations at Decred, said in an email in response to Axios. “Especially when all of these exchanges inherently require users to provide personal information in order to trade.”

  • “Larger exchanges like Binance, Coinbase, and FTX are more forward-thinking and likely appreciate that the future of cryptocurrency includes strong privacy safeguards,” he added.

Ernesto Contreras, global head of marketing and business development at Dash Core Group, tells Axios that Dash is “identical to bitcoin,” since transactions and addresses can be viewed publicly on the blockchain.

  • “We are reaching out to Huobi and the regulators, and we hope to clear up this misunderstanding soon, as we have done in the past with exchanges that have taken this position,” he says.

What others say: “It’s very likely that exchanges will feel pressure to write off privacy technologies. We’re definitely watching to see what they do,” Galaxy Digital’s Alex Thorne told Axios.

playing conditionJust this week, the US Treasury published guidelines on Ethereum’s largest privacy tool, Tornado Cash, providing clarity on how users can legally withdraw funds.

  • Meanwhile, FTX recently warned Customers about interacting with the Aztec Privacy Protocol.
  • And the Binance And the Queen Piecerespectively, try to explain their position on some tokens, but don’t directly address where in the world certain directives come from that would prevent them from including them.

What’s Next: The issuers of Lucky Seven seem willing to deny that the main feature of their tokens is privacy-enablement in hopes of diverting attention and staying in the good graces of coin custodians.

Crystal Thought BubbleCypherpunkian principles are what separate the cryptocurrency crew from Wall Street, and without it, it’s just a Rube-Goldbergian version of the same financial machine. And those rich interests are at industry anyway.



Source link

Leave a Comment