Advanced cryptography hides privacy coins such as Monero members’ public wallet addresses and payment amounts when their transactions appear on the blockchain, making it unlikely, in the context of modern technology, for forensic organizations like Chainalytics to digitally track the identity of the transaction. … aspects.
The development of privacy coins such as XMR has been a controversial topic. Proponents argue that they offer users more privacy than cryptocurrencies with public accounts like Bitcoin (BTC), knowing that public wallet addresses and individual transactions cannot be tied to customer information stored on exchanges in order to break through the veil of their personality. However, critics say the untraceable nature of private currencies makes them ideal for criminals such as drug smuggling, tax evasion or money laundering.
As a result, privacy coins are being scrutinized by cryptocurrency exchanges around the world. Coinbase refused to host XMR last year, citing regulatory concerns. Earlier in January, Bittrex removed XMR as well as the leading privacy coins Zcash (ZEC) and Dash. Ricardo Spani, a former XMR developer, was arrested in the US in July at the request of the South African government for allegedly committing fraudulent crimes in the country between 2009 and 2011. He has since been released, but trials are ongoing.
Despite the growing reluctance by central financial institutions and administrations to oppose privacy coins, it continues to gain traction among cryptocurrency users. According to CoinGecko, the total market capitalization of all cryptocurrencies is now close to $15 billion.