The Fate of Privacy Coins

[Tipstar]

But if they all are delisted from centralized exchanges they will lose liquidity as the only option remains ,i.e. decentralized p2p exchanges that currently  have a pretty low volume of operations.

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.

[Febo]

(consider the case of Huobi Exchange which de-listed Monero a while ago)

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


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[FanEagle]

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.

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.

[cabron]

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.

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.

[masterrex]

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.

[anhhung409]

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.

[michellee]

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.

[Vishnu.Reang]

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.

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.

[tabas]

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.

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.

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

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

[Abiky]

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.

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