Topic: EU Moving to Ban Privacy Coins: Report (Read 458 times)

Why would you expect them to ban these private coins, if you really want to use decentralized coins to protect your privacy then you should also support the existence of private coins private? Once they have succeeded in banning privacy coins like XMR, Zcash then most likely they will also find a way to ban decentralized coins like bitcoin because they want a centralized and visible world. They are trying step by step to control this market.

Banning the aforementioned alts would probably make Bitcoin more attractive, but I don't see any benefit in eliminating the competition through government brute force. First it's Dash, Monero, then it might be a blanket ban on all crypto's for the next arbitrary reason. Stopping money laundering by banning privacy coins seems like a palatable excuse but I'm curious as to how much the EU estimates money laundering to be taking place via crypto. Blockchains aren't even remotely close to being security risk.

Given the rise of actual violence with war, it's a bit laughable that their concerns lie with crypto.

If money laundering are their main motivation behind this, then they will have to force (FIAT) Banks to close their doors. Most money laundering are still being done through the Banking system. 

Yes, "Privacy" coins offer huge opportunities for people to use it for criminal activities, but is the same not applicable to cash? How many drug transactions on the street are done with "Privacy" coins, compared to cash.... how does that cash get into the financial system? (Registered businesses are used to launder money through the Banking system) 

I'll upset you a little
Ok, for fantastic works - it's all great! But in reality... Let's give an example. You and I, those same heroes of a fantastic work. We come to the conclusion that we need our own currency. Let it be candy wrappers Ok, so we decided. We collected, bought all the candy wrappers in the country for fiat money, the financial system is ready. And here is the most subtle point - we do not have an ordinary currency. I need a bottle of mineral water tomorrow. I go to the store and .... I leave without shopping. The only one who might sell me water for candy wrappers is you. But your water supply is not eternal, and besides candy wrappers, there is also no other money. I hope the problem is clear - the lack of a global infrastructure that will allow them to be easily, or acceptably difficult, exchanged for products of regular consumption. The question is - if the entire financial system is limited by laws - how will you use this crypto currency? While it has not been banned, it can be used even more or less. But as soon as it becomes illegal, it will not be a currency, but a "virtual hemorrhoid"

If money laundering are their main motivation behind this, then they will have to force (FIAT) Banks to close their doors. Most money laundering are still being done through the Banking system. 

Yes, "Privacy" coins offer huge opportunities for people to use it for criminal activities, but is the same not applicable to cash? How many drug transactions on the street are done with "Privacy" coins, compared to cash.... how does that cash get into the financial system? (Registered businesses are used to launder money through the Banking system) 

They cannot forbid anyone from doing a private transaction, it is impossible to prevent it. What they can do is to forbid all CEXs to list such coins and thus prevent as many potential users as possible from getting possession of them. With such measures, they certainly want to reduce the share of such transactions and direct as many users as possible to use those cryptocurrencies that can be monitored.

Of course, this should not be interpreted as a friendly attitude towards Bitcoin, because everything that is not under the direct control of the ECB is not acceptable and will not be encouraged by legislators and politicians.

The question is - if the entire financial system is limited by laws - how will you use this crypto currency? While it has not been banned, it can be used even more or less. But as soon as it becomes illegal, it will not be a currency, but a "virtual hemorrhoid"

The European clerks are doing something in order to justify their salaries and their pointless jobs.
It's funny how those news about banning something related to crypto happen always, when there is a price crash, bear market, big crypto company scamming their investors, bankrupts, etc. You won't read such crypto news, when the crypto market is bullish and the investors are making money. The Privacy coins might be banned from crypto exchanges, but this won't stop the regular crypto users to use them.
I don't know how the authorities would be able to track the transactions of a privacy coin and catch the people, who are transacting.

I don't know how the authorities would be able to track the transactions of a privacy coin and catch the people, who are transacting.

I don't know, man.  It seems like a very short leap from banning/restricting privacy coins to banning/restricting any cryptocurrency up to and including bitcoin itself.  Makes sense, right?

These fucking government bureaucrats aren't at all concerned about money laundering in the context of privacy coins.  Do they know there's a problem there to begin with, and how would they even get the data on that?

Just like in the US with its brand-new 80,000 IRS agents, the EU wants control over the money you spend whilst keeping their octopus hands in every pocket their citizens keep money in.  My only question is how to fight this nonsense.  Is anyone even trying to?

I love reading science fiction novels about our future.

In particular, I enjoy reading cyberpunk novels with great pleasure. All of these novels feature anonymous and confidential currency. The heroes of the novel are hiding from mafia persecution (for example, the yakuza or triads) and they need special untraceable anonymous money.

From this we can conclude that the need for cryptocurrencies like Monero (XMR) is not going anywhere.

And a ban from the European Union will not be able to lead to the disappearance of the circulation of such confidential cryptocurrencies.

In particular, I enjoy reading cyberpunk novels with great pleasure.  All of these novels feature anonymous and confidential currency.  The heroes of the novel are hiding from mafia persecution (for example, the yakuza or triads) and they need special untraceable anonymous money. 

From this we can conclude that the need for cryptocurrencies like Monero (XMR) is not going anywhere. 

And a ban from the European Union will not be able to lead to the disappearance of the circulation of such confidential cryptocurrencies.

And what exactly element/feature should be removed? Without clear definition/example, people could perceive it as removing most privacy-enhancing feature.

Both Monero and Zcash have view key which can be used to audit to some extent. Although it doesn't seem government know or care about it.

Criminal could laundry/move their money even when they use bank, so i believe they'll find way to utilize their coin. For example, 2 group of criminal agree to use certain coin for payment.

So will the privacy coin disappear like a whisper on the wind? Reports that the EU will move to ban them come with a few hitches. The ban will not officially take effect until a proper regulatory framework around cryptocurrencies has been established by the EU. I'm sure that the privacy coin is here to stay.

By complying i mean removing the element of using anonymity to escape regulations.

I am sure that you know how zero knowledge works. But in case you don't you can literally prove and audit everything without revealing anything important. Keeping everything private while being decentralized, permissionless but auditable

And how would that ignoring and holding coins help excatly if you can't turn those coins to fiat money or convert into anything wortwhile without raising flags?

But if complying means removing most privacy feature or make it centralized, popularity of those privacy coin would be reduced either way.

And most criminal probably would ignore the ban while many citizen hesitate to continue holding one of those privacy coins.

In the past, there has also been considerable debate on whether dash should be considered a privacy coin.

Yeah, i know and that's the problem, if devs won't be adjusting their ideology. If they are not going to be complying with regulators, privacy coins will be next to worthless soon.

Absolutely expected! Unfortunately, almost any product can be used both for the benefit of people and for harm. Cryptocurrencies are no exception. In addition to technological advantages and new opportunities, cryptocurrency has become a "solution" for criminals of all stripes - from drug dealers to totalitarian or terrorist regimes who want to use cryptocurrency as a mechanism to evade control, circumvent sanctions, etc. Therefore, unfortunately, there are such laws

Why would you expect them to ban these private coins, if you really want to use decentralized coins to protect your privacy then you should also support the existence of private coins private? Once they have succeeded in banning privacy coins like XMR, Zcash then most likely they will also find a way to ban decentralized coins like bitcoin because they want a centralized and visible world. They are trying step by step to control this market.

I already expect many country will ban privacy coins since Coinbase already delist privacy coins from few years ago.

OP meant private blockchain and not public blockchain! It is not a security concern to the individuals or corporations! It is a security concern to the government. Individuals rather wants such kind of privacy protection which can be achieved by privacy coins and that's what EU is planning to attack. They are citing reasons such as money laundering and terrorism financing. But the main point is that privacy coin can't be tracked or controlled by the governments.

It won’t be easy even for EU to place a ban on privacy coin. Like the name implies it’s a coin that supports privacy and would most like also support anonymity, security and it’s should also be decentralized.

The government has always felt threatened by coins that possess such properties. It’s hand to regulate or track privacy coins and it’s uses, but this many be the litmus test because if they go ahead only camouflage privacy coin would be exposed and go down.

So will the privacy coin disappear like a whisper on the wind? Reports that the EU will move to ban them come with a few hitches. The ban will not officially take effect until a proper regulatory framework around cryptocurrencies has been established by the EU. I'm sure that the privacy coin is here to stay.

That's the point of using privacy coins as crypto Ethos.
-cut-

Now that governments are trying to capture crypto all because of the FTX failure.

Why does public blockchain has a serious security to individual users or corporations?

if you're never expose your KYC to any exchanges or platform, you will be fine since no one know your name, your face and where you live. This is why privacy is important and to achieve it you need to use decentralized coin e.g. Bitcoin, use DEX e.g. Bisq and use reputable Bitcoin mixer.

I already expect many country will ban privacy coins since Coinbase already delist privacy coins from few years ago.

Problem is that most of the devs aren't interested to comply with regulators, but to fight them so this is what happens.

Recently spain and portugal have introduced visa programs for digital nomads to reside in country. Could further regulation of crypto deter digital nomads from migrating into the EU. Making other options such as puerto rico and the caribbean more attractive?

The European Union may be stepping up its regulatory actions in the privacy sector.

Key Takeaways

• The European Union reportedly has plans to restrict or ban the use of privacy coins in its jurisdiction.
• The thinking behind the potential ban appears to be primarily concerned with money laundering.
• As on-chain surveillance becomes more sophisticated and legislators on both sides of the Atlantic become increasingly vigilant, the case for privacy-preserving cryptocurrencies is ever more apparent.

The European Union is said to be mulling a ban on privacy coins, including Monero (XMR), Zcash (ZEC), and Dash (DASH).

Leaked Document

EU legislators are working on an anti-money laundering policy proposal prohibiting banks and crypto providers from interacting with privacy coins, according to an anonymous EU diplomat who reportedly revealed the plans to CoinDesk.

If enacted, the policy would effectively blacklist a host of popular cryptocurrencies, including Monero (XMR), Zcash (ZEC), and Dash (DASH).

In March, the European Parliament forwarded legislation to impede transactions between exchanges and unhosted wallets. The parliament now seems prepared to escalate restrictions against anonymity in crypto.

In a draft of the legislative proposal dated November 9, initially reported by CoinDesk, the body said: “Credit institutions, financial institutions and crypto-asset service providers shall be prohibited from keeping…anonymity-enhancing coins.”

The draft is believed to have been drafted by Czech officials and has since been shared among its 26 member states. As of yet, the privacy-busting proposal has yet to be made official.

Privacy In Trouble?

Earlier this month, Crypto Briefing spoke with Zcash CEO Josh Swihart to gain an insider perspective on the challenges and opportunities within the privacy coin sector. Swihart told us that public blockchains are a serious security risk for individual users and corporations.

“If I’m a business accepting cryptocurrency natively, not through a third-party intermediary, I can’t afford to let my competitors see all of that [personal] information,” said Swihart. “Not only the information about my business—what’s coming in and out—but information about my customers who may be transacting with me online or using cryptocurrency. So I expect there to be a tipping point where there’ll be a flood of demand.”

Swihart expects that the demand for privacy coins will become increasingly urgent as “now you have all kinds of crypto surveillance companies, Chainalysis and others, that are not only tracking transactions in order to look at flows, but they tag addresses.”

It is possible that regulators and ever more sophisticated on-chain surveillance could catalyze increased demand for privacy coins. Ironically, regulators could argue for privacy coins rather than kill them off.  

That’s a lesson that might apply equally to regulators in the US. The recent blacklisting of Tornado Cash by the US Treasury Department’s Office of Foreign Assets Control (OFAC) is one such example.

“There’s healthy concern about the direction in which regulatory conversations have been going,” Swihart told us. “I think what OFAC did was a massive overreach.”

https://cryptobriefing.com/eu-moving-to-ban-privacy-coins-report/

Earlier this month, Crypto Briefing spoke with Zcash CEO Josh Swihart to gain an insider perspective on the challenges and opportunities within the privacy coin sector. Swihart told us that public blockchains are a serious security risk for individual users and corporations.