Bitcoin Forum

Ever-increasing regulations are demanding centralized exchanges to provide utmost sensitive information from their customers. Transparent cryptocurrencies like Bitcoin and Ethereum are much easier to keep track (for taxation, illegal activities, etc.) than it's the case with privacy-oriented cryptocurrencies like Monero and Grin. As governments pressure centralized exchanges to de-list privacy coins (consider the case of Huobi Exchange which de-listed Monero a while ago), their fate could be put at risk.

Imagine if all centralized exchanges decided to stop the trading of privacy coins to Fiat or any other cryptocurrency. People will only be able to access them via decentralized exchanges or atomic swaps. The fact that they'll be considered "illegal", will make many people skeptical about using privacy coins in the first place.

What do you think the fate of privacy coins will be? Will governments continue to be friendly towards them or not? Your input will be greatly appreciated. :)

All the centralized exchange will be forced to follow the regulations and the authorities will force them to de list all the privacy based coins and the situation with Huboi exchange was just the beginning and if the exchanges wants to run their business successfully then they will be forced to follow the regulations and none of these exchanges would be willing to go against them.


To trade privacy coins in a regulated exchange will be a dream in the future, but there will be exchanges that will stay away from regulations and if there is a site that can be trusted and if all the fiat transactions can be carried out using P2P where the site acts as an escrow and it will move forward with ease. Government will try to restrict but they will not succeed completely because it is the world wide web ;).

The only difference is that the authorities will force the privacy coins underground.
  

This is definitely a very interesting subject... while the printed bills of USD grant anonimacy and have been widely used for illegal purposes all over the globe they are physical and as such they are much easier to control than a crypto currency as you need to carry them from one place to the other in order to preform a transaction... this is maybe why governments are scared of private crypto as they might very well get out of their control ...
I think the future will bring something similar to what Beam was trying to acomplish while working with the japanese authorities, a private coin in which you can still have some kind of choice concerning the privacy level or some auditability...
I do not believe that privete coins will vanish as privacy is one of the most important things for humanity... people just forgot about it...

I think governments will not support them ever even when crypto mass adoption becomes a reality but at the same time i think that they will continue to exist and they will be used like they are used today because governements cannot block them and that is the beauty of blockchain and decentralized products. I have seen many countries have banned or rendered them illegal in some countries but the people are still using crypto freely which goes to show that blockchain tech can survive in all conditions.

The use of such coins is very convenient and important for the entire crypto community.  For the most part, many unnecessary coins depreciate, and some disappear completely as unnecessary. Since most of them are forks.  I think coins like Monero will not disappear, they will always be in demand.  At least due to the fact that at low commission fees, the blockchain processes more transactions per second.  But this is only my opinion, there are those who think differently.

Not anymore. With the steps that the South Korean government did which forced some of their exchanges to delist Monero. I don't think that they'll be evermore friendly to Privacy Coins. That's what the government don't like. Bitcoin isn't fully anonymous and that's why they can tolerate it and they can still look into it. But with the other altcoins that's completely implementing anonymity, we can think of the same how did the example country did.

The fate of privacy coins lies on the hands of those who still wish to use it.

Even if the governments ban or advice against the use of such, if people see value in what the coin offers, they'd use it still. Besides, if the coin is anonymous already, why would one be scared to use it and be caught? Anyway, I don't see governments easing their stance against such coins since it can be a vehicle to launder money anonymously. They can't just knock on the doorsteps of developers and force them to relay information as it can't be done. They will allow certain cryptocurrencies only if they know that they have a way to see how transactions are going, and with privacy coins, they are completely denied of that spying ability.

Monero will not disappear. Privacy coins are always going to be part of crypto and that it will always have a place in the market. I have not followed the development of Monero though but there is a good community that had been using XMR for good and probably along with the anonymous coin like the DeepOnion.

It doesn't matter if government will not be friendly to Monero and other anon coins, its going to be used by the people who are concern of their privacy.

If all the exchanges tries to delist the privacy coins means then it will be the cause for evolution of decentralized exchanges into main stream exchange, so regulation should be in limits or people will broke it without any limits.

Governments will never become friendly towards decentralized or privacy coins but if people demanding them means they have to accept it.

Main reason on why they do try to shut things down and the primary target would be exchanges on which we have seen on delisting out privacy coins like XMR etc.
No one can stop if there would be still a community or people do support or make use of it but we cant really deny the fact that it would be hard if they would continue
to shut of the gateways on where a certain privacy coin user tend to make conversions but its not really that a big issue atm yet we have seen that these coins
do still manage to exist even though theyre are being gradually restricted.

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.

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.

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

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.

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.

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

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

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

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

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!

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.

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


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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.

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 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.

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.

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.

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.

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

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 :)