Built as peer-to-peer payment systems, cryptocurrencies seek to improve trust, security, and privacy by eliminating third parties.
These coins offer users complete anonymity or pseudonymity in transactions through the use of blockchain technology-a particularly odious feature for regulators.
This set of guidelines has led to a massive flight away from these privacy coins.
OKEx Korea recently announced that it would delist privacy-focused Zcash, as well as Dash, due to increasing regulatory scrutiny from the FATF. And OKEx wasn't the first to flee the privacy coin world.
The general theme of the past three months has been a widespread distrust of the risks associated with privacy coins generally.
As the exodus has continued, these coins have lost substantial value.
This type of solution offers a middle road between the current FATF guidelines and the hard privacy of coins like Zcash and Monero, while still remaining decentralized.
Verge coin offers private and public transactions, hoping to maintain FATF compliance.
While the potential to hide from the government will always be there, it seems clear that coins that seek middle ground with regulators pose the greatest hope for privacy coins.
Particl is composed of three parts: 1) a privacy coin capable of untraceable and unlinkable transactions, 2) a private, decentralized online marketplace where anyone can buy and sell goods and services with cryptocurrencies without leaving a trace, and 3) a platform on which various applications can be integrated.
Can cryptocurrencies find a meeting place between privacy and regulation?
Published on Oct 31, 2019
by Cryptoslate | Published on Coinage
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