Topic: The Fate of Privacy Coins (Read 308 times)

Good point. Thanks to the decentralized and open source nature of crypto, anyone can still use and trade privacy coins even with government restrictions in place. It'll be quite a challenging task though, but not impossible. I believe that the minority of people will be using privacy coins like Monero and Grin, while the rest will use transparent cryptocurrencies like Bitcoin and Ethereum. Centralized exchanges may stop supporting privacy coins in their entirety, but DEXs and atomic swaps will become the norm in the decentralized world. People who truly value their privacy will resort to using these types of cryptocurrencies above traditional ones we know and love today.

While governments often claim that privacy coins are used for money laundering, we all know that's not largely the case today. Criminals still use Fiat for their illicit activities, mainly because it's stable and trusted worldwide. This should give privacy coins a certain level of legitimacy over traditional Fiat. The main reason why governments are against privacy coins is because they provide people with true freedom over their money. No one except you can know the origin and destination of your funds, how much money you have in your wallet, etc. By eliminating third-party intervention, you become the sole owner of your money. That's not what governments want since they want to stay relevant in the world's economy.

Eventually, privacy coins will end up being de-listed from every single centralized exchange as we know them. But that may not stop privacy coins from growing in widespread use if people use alternative means for trading. As long as there are people supporting privacy-oriented cryptocurrencies, their future will be a bright one. Ultimately, their fate will rely on the people themselves. Just my opinion

I can't imagine how they'll do that. I'm not a developer so that makes me think how they will do it.

If the governments are cracking down on the usage of anonymous coins, then it doesn't surprise me. It was more or less expected. We can't deny the fact that vast majority of these coins are being used in dark markets. The exchanges are not allowing the users to trade with these coins, and the authorities are trying to track whomever holding them. IMO, the future outlook is bleak.

The privacy coins will still survive, no matter if the government ban the coin or not. If people cannot use the privacy coin at one exchange, people will search for the other exchange, and I am sure that they will find that exchange. The existing of the privacy coins will still continue as we see that people still use the privacy coin to trade and make money.

I think governments will not support them even if the adoption of cryptocurrencies becomes a reality, but the use of such coins is convenient and important for the entire cryptocurrency community. They will allow certain cryptocurrencies only when they know that they have a way to see how transactions are taking place and with private currencies, they completely deny the possibility of spying.

I think the crackdown was already initiated most of the privacy equipped cryptocurrency is in big trouble because many governments particularly the United States wants to regulate the crypto industry and they are worried about those privacy coins because it is very hard to track and identify those transactions due to its privacy features thats why if we recall in the previous months those privacy coins are already threatened to delist on many regulated cryptocurrency exchanges globally because of that privacy features issue.

Once government start regulating the exchanges taking all the privacy coin out of the markets, then only the p2p will keep trading these coins which eventually will lead more volume to the DEX, they are out of options when they do that.

Delisting the privacy coins will only make it difficult for them to track who the token owners of moneros and others like dash.

I am not seeing it as a problem ONLY for non-traceable cryptocurrencies but for all the cryptocurrencies'. Yes, if governments start providing regulations to exchanges and banks on limited support on few or all the cryptocurrencies then we must need to think about alternates. I guess this is the reason we are already having P2P trading model. After decentralized exchanges or atomic swaps, P2P exchanges within a government approved platform may survive without any need of government/federal bank's support.

There was a news/rumor about monero like some governments are enforcing exchanges to delist it. But, I believe any such a threat are indirectly make them more popular as more people will get aware of such coins and their features and applications.

Overall, I am not seeing any down trend for privacy oriented coins even any government tries to regulate them; those coins will find an alternate way to survive to serve the crypto community.

Huobi exchange did not delisted Monero. https://www.huobi.com/en-us/exchange/xmr_usdt/  Huobi Korea did.


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The privacy coin has been a genre that are receiving comparative success in crypto industry. There are a lot of newer privacy based crypto and they are also being adopted by many platforms. Not only for Darkweb, they are also getting popular with porn industry and payment for adult services.

True, but privacy coin aren't meant for trading or making profit from their price volatility.
If their price will drop so be it.
Besides, what's the utility of these coins if you are going to buy them from a centralized exchange that knows every thing about you!

I don't think complete implementation of anonymity is the problem... A Blockchain project can offer/allow full anonymity without making it easy for criminals to take advantage of the full anonymity to commit crimes.
Anonymity based coins need to reconstruct their projects to guarantee full anonymity while still making it hard for criminals to thrive with the projects

It's a complicated scenario that crypto has found itself. It needs the privacy coins to complete its definition as a decentralised s3cure and obscure entity. It also need the world government bodies to recognise it as an asset which is centralisation. The pendulum tilts towards centralisation with respect to the data from exchanges and this means that privacy coins will be at risk sooner or later

If you want to be able to contact the police when your coins are stolen-you will have to be friends with the state. If you want to be arrested for the very fact of owning a cryptocurrency-you can not be friends with anyone at all.
I think that these are quite understandable categories of extremes from which you can start in the issue of interaction between the crypto and the state

Even if all exchanges are forced to follow the rules of regulations and blocking out all privacy coins from their exchanges that's when things will start getting interesting for privacy coins, there will be more scarcity for coins like Monero and the only way you can buy is through DEX, all volumes will be shift to dex exchanges

As a user who values his privacy and interested in privacy-oriented cryptocurrencies, you should never use a centralized exchange.
Those coins shouldn't be traded there in first place.
Even if all centralized exchanges delist these privacy coins it wouldn't affect them. At the contrary, I believe it will have an opposite effect as users will know for sure that governments can't  track them and have no other option other than delisting them from CEXs.

It's not unexpected that the regulations will try to pressurized privacy coins like monero because of its anonymity. What I have in mind is that decentralized exchanges will be used by many who doesn't want their identities to be collected. P2P (or person to person transaction) and other similar to that will also be encourage as regulations tighten. I do not think privacy coin will be discourage though as many seek it and there's a whole community for it.

Monero is now hated by numerous exchanges for the sole reason that the government cannot check the transactions at this coin. However, I would love to use it because the more anonymity a coin will attract a lot of people.

Of course, there are still lots of big exchanges supporting this coin, so I don't have to worry about liquidity. Sometimes I also trade with some of my clients with Monero and everything is perfect for me

Privacy coin is defined as a cryptocurrency that hides data about its users. At a minimum, privacy coins hide identities. ... Bitcoin transactions and wallets are also publicly visible data. Nevertheless, there are many privacy coins. Zcash, Dash, and Monero are the 3 most popular options, but there are dozens more.
Privacy coins and distributed exchanges will soon be outlawed. But these laws will have no more teeth than the ineffective laws against Marijuana. Do not abdicate your rights! You have, absolutely, the right to financial privacy.

Now there is an urgent question in relation to all cryptocurrencies, not only monero. Therefore, the final answer can be formed a little later. Even if there is a ban, I personally will not suffer much because I never kept monero on my balance sheet.