How do centralized exchanges tolerate Monero transactions?

[Synchronice]

I see that many people have problem with bitcoin transactions because sometimes exchanges block them if they come from casino or from mixer or they simply tell you that your coins come from shady activities, their ToS and 0 regulation from governments in this case gives them absolute power to do whatever they want without further explanations or proofs.

So, my question is, since bullshit Blockchain Analyses companies partner with exchanges and block Bitcoin transactions, that means if one wants to use it, Bitcoin deposits aren't the safest options out there. But how do they deal with Monero? Monero is as anonymous as possible and they can't claim that your coins come from blacklisted addresses or something like that but at the same time Monero is very popular on darknet and I am afraid this close relationship of Monero and DN can make a person appear suspicious on exchanges. I don't know if I follow the right logic here but would love to hear your experiences, have you ever had a problem with monero deposits on exchanges/casinos and so on?
P.S. I know we shouldn't use centralized exchanges but I want to fulfill my interest.

[_act_]

I see that many people have problem with bitcoin transactions because sometimes exchanges block them if they come from casino or from mixer or they simply tell you that your coins come from shady activities, their ToS and 0 regulation from governments in this case gives them absolute power to do whatever they want without further explanations or proofs.

There are very few exchanges that do not allow deposit from gambling sites, example is Coinbase. All exchanges that I have used allow deposit from gambling sites.

No exchange that I have used that sized the coins that I mixed on centralized mixers before. I have heard of coinjoin that exchanges do seize transaction from coinjoin mixers but I have not sent coinjoin transaction to an exchange before.

So, my question is, since bullshit Blockchain Analyses companies partner with exchanges and block Bitcoin transactions, that means if one wants to use it, Bitcoin deposits aren't the safest options out there. But how do they deal with Monero? Monero is as anonymous as possible and they can't claim that your coins come from blacklisted addresses or something like that but at the same time Monero is very popular on darknet and I am afraid this close relationship of Monero and DN can make a person appear suspicious on exchanges. I don't know if I follow the right logic here but would love to hear your experiences, have you ever had a problem with monero deposits on exchanges/casinos and so on?

Bitcoin is deposit is safe. Safety and privacy are different.

Not all exchanges allow monero, but most exchanges allow it. If monero is not listed on Coinbase and other United States exchanges, I will not be surprised. But exchanges outside USA allows a lot.

[OmegaStarScream]

Not all exchanges allow monero, but most exchanges allow it. If monero is not listed on Coinbase and other United States exchanges, I will not be surprised. But exchanges outside USA allows a lot.

I wouldn't say that. Dubai[1] already doesn't allow Monero or Zcash. Upbit, Bithumb, and Huobi[2] (Korean exchanges) all delisted privacy coins a couple of years back.

Binance did announce delisting due to EU regulations, but then went back on their decision shortly after[3] so if anything, I would say sooner or later, no CEX will have those privacy coins.

[1] https://www.coindesk.com/policy/2023/02/08/dubai-prohibits-privacy-coins-under-new-crypto-rules/
[2] https://finance.yahoo.com/news/upbit-bithumb-delist-numerous-coins-163305570.html?guccounter=1
[3] https://cointelegraph.com/news/binance-wrong-monero-zcash-privacy-coins

[Yamane_Keto]

Rarely does a centralized cryptocurrency platform have a deep blockchain analysis to know the details of transactions from the moment of mining, otherwise they will find that a good share of the coins in circulation may be suspicious so they do a simple analysis of the recent transactions, if they are from suspicious sources they will suspend the account and they rarely do that.
Part of the cryptocurrency platform's license is knowing all the information about the client, so most KYC exchanges prohibit Monero transactions.
Some CEX are trying to increase the number of users by listing Monero, but they are cooperating with the authorities and may close your account at any time, so if you are concerned about your privacy, use DEXs.

[milewilda]

I see that many people have problem with bitcoin transactions because sometimes exchanges block them if they come from casino or from mixer or they simply tell you that your coins come from shady activities, their ToS and 0 regulation from governments in this case gives them absolute power to do whatever they want without further explanations or proofs.

So, my question is, since bullshit Blockchain Analyses companies partner with exchanges and block Bitcoin transactions, that means if one wants to use it, Bitcoin deposits aren't the safest options out there. But how do they deal with Monero? Monero is as anonymous as possible and they can't claim that your coins come from blacklisted addresses or something like that but at the same time Monero is very popular on darknet and I am afraid this close relationship of Monero and DN can make a person appear suspicious on exchanges. I don't know if I follow the right logic here but would love to hear your experiences, have you ever had a problem with monero deposits on exchanges/casinos and so on?
P.S. I know we shouldn't use centralized exchanges but I want to fulfill my interest.

If you do try to have some peek on the markets on which Monero(XMR) is traded on, then you would be able to see that even Binance does have it.
https://coinmarketcap.com/currencies/monero/#Markets

I dont see any issues about transferring your coins into those platforms because we know that exchangers are heavily centralized which means that they do abide government laws
and on the time that you do make out some transfers then anonymity would really be surely be removed.Why? for sure you would really be complying out some KYC
on your exchange account which means that your been already traced or known that you do have made out XMR transactions which i dont see for them to be worried about anonymity or some legal
issues because as long they do get a hold of your information then there's nothing they would really be worrying about unless if those XMR transactions made out on p2p
then it cant be traced.

But we've seen those delisting of privacy coins which its not really that a shocking thing because government doesnt really like on dealing up with things which arent
something that could be controlled and since they do have that power and rights with those current platforms then they would really be just simply implying it.

[Jawhead999]

Fortunately I always use no KYC P2P when I dealt with Monero, centralized exchanges have been against Monero since few years ago, so I already expect they will become strict and in the future every exchanges might will not accept Monero anymore.

My assumption they can tolerate only if you've verify your account and satisfy their request to provide the fund comes from.

[joniboini]

My assumption they can tolerate only if you've verify your account and satisfy their request to provide the fund comes from.

It would be better to assume you'll likely be subjected to intense scrutiny and need to provide many documents, should you try to use them when they say they don't support privacy coins or your coins have a history with related privacy coins transactions.

Probably not the best choice to make if you want to use your privacy coins. Using a P2P should be a better option imo. Even I don't feel comfortable with my local exchange even though they don't show any sign of cracking down privacy coins just yet.

[Husires]

There are CEX that do not require identity verification because their activities are limited and the total daily trading may be less than a million dollars, so they do not require identity verification and they accept privacy currencies such as Monero to increase subscribers. These platforms will be present alongside the centralized platforms, but when the number of users increases and they are forced to deal with banks Then further restrictions begin, such as imposing identity verification and removing these currencies.
Use me signature to know exchanges that accept Monero and exchange it to BTC

[noorman0]

The object of an exchange's AML policy is their customers. Exchanges are cracking down on customer funds based on internal considerations (somehow), Monero only puts customers closer to the freeze alarm especially if they suddenly deposit these coins in unusual amounts.
This is indeed quite contradictory, but as long as there is no local policy that prohibits trading this coin then it will continue to be traded.

[vv181]

Bear in mind, that bitcoin also has a close relationship with the dark market. In fact, maybe it pioneering its usage with Silk Road. In regard to Monero, I would believe that opening up the door on the centralized exchange would rather make them easily observe any activity, well just like any other coin to be exact. But of course, due to the nature of privacy-centric coin, the weight of its users getting observed more is way more likely.

That is to say, since the activity on the network are obscure, there is a good reason that some centralized entity establish a service in which their users are able to be identified.

[Husires]

Bear in mind, that bitcoin also has a close relationship with the dark market. In fact, maybe it pioneering its usage with Silk Road. In regard to Monero, I would believe that opening up the door on the centralized exchange would rather make them easily observe any activity, well just like any other coin to be exact. But of course, due to the nature of privacy-centric coin, the weight of its users getting observed more is way more likely.

The close relationship with the dark market has changed since 2013, as few people buy Bitcoin to use it to buy things on the Internet, and the majority consider it a long-term investment. Therefore, you see high activity for Bitcoin on central platforms and less on the dark Internet, which has become its currency, Monero.
It is not possible to monitor activities in Monero. It is very difficult, and therefore there is no company capable of providing a difficult tracking service, not to mention any that are expensive in an open blockchain like Bitcoin.

[vv181]

Bear in mind, that bitcoin also has a close relationship with the dark market. In fact, maybe it pioneering its usage with Silk Road. In regard to Monero, I would believe that opening up the door on the centralized exchange would rather make them easily observe any activity, well just like any other coin to be exact. But of course, due to the nature of privacy-centric coin, the weight of its users getting observed more is way more likely.

The close relationship with the dark market has changed since 2013, as few people buy Bitcoin to use it to buy things on the Internet, and the majority consider it a long-term investment. Therefore, you see high activity for Bitcoin on central platforms and less on the dark Internet, which has become its currency, Monero.
It is not possible to monitor activities in Monero. It is very difficult, and therefore there is no company capable of providing a difficult tracking service, not to mention any that are expensive in an open blockchain like Bitcoin.

2013 is a long way. Let's cite some reports from Chainalysis.

2023:

Darknet market activity

In the past several years, many darknet markets have adopted Monero to reduce traceability. For instance, White House Market, one of the most active darknet markets before its closure, encouraged its users to shift from Bitcoin to Monero for transactions and eventually transitioned to only accepting Monero. Other darknet markets, such as AlphaBay and Archetyp, followed similar models. However, Bitcoin is still the most commonly used digital currency on darknet markets.

2020:

Finally, we may see more darknet markets accept, or perhaps even mandate the usage of privacy coins like Monero. Monero uses an obfuscated public ledger to make it more difficult to see the senders, receivers, or amounts of cryptocurrency exchanged on transactions. As of now, Empire appears to be the only major darknet market accepting Monero, but that could change in 2020.

So it is clear according to them darknet market activity is still closely tight with Bitcoin. Monero does offer a more robust and private way of transaction, the way they handle transactions is absolutely not on par with Bitcoin. However, the fact Bitcoin still leads the way in terms of market cap also answers why it is still being widely used.

I would love to see if you have some research/report that suggests otherwise.

[Rimueng]

I see that many people have problem with bitcoin transactions because sometimes exchanges block them if they come from casino or from mixer or they simply tell you that your coins come from shady activities, their ToS and 0 regulation from governments in this case gives them absolute power to do whatever they want without further explanations or proofs.

So, my question is, since bullshit Blockchain Analyses companies partner with exchanges and block Bitcoin transactions, that means if one wants to use it, Bitcoin deposits aren't the safest options out there. But how do they deal with Monero? Monero is as anonymous as possible and they can't claim that your coins come from blacklisted addresses or something like that but at the same time Monero is very popular on darknet and I am afraid this close relationship of Monero and DN can make a person appear suspicious on exchanges. I don't know if I follow the right logic here but would love to hear your experiences, have you ever had a problem with monero deposits on exchanges/casinos and so on?
P.S. I know we shouldn't use centralized exchanges but I want to fulfill my interest.

You absolutely right that some exchanges can be very strict when it comes to the origin of btc deposits especially if btc mixer because this method is actually 50-50 so it is related to legality only and goes into the gray area. For fear that it will lead to money laundering and enter the realm of the laws of each country.

For monero, its anonymous nature can make it potentially more challenging for exchanges to verify the source of deposits so it is as anonymous as doing a mixer on bitcoin. I agree with you, for monero, the transactions cannot be tracked and tend to be the same as btc mixer earlier tends to be misused. So, while it offers significant advantages in terms of privacy, its connection to darknet markets may raise suspicions. I have also encountered that sometimes they (exchanges) do not open deposits for monero even though the transactions exist.

[Synchronice]

So, while it offers significant advantages in terms of privacy, its connection to darknet markets may raise suspicions. I have also encountered that sometimes they (exchanges) do not open deposits for monero even though the transactions exist.

What about $100 bill? Isn't $100 bill connected to snorting coke? But why doesn't that raise suspicions? I'll be 100 frank and tell you that more likely, if we keep in mind the psychology and behavior of people and their perceptions, not majority but still many people use monero and bitcoin mixers for illegal activities, everyone knows that when there is a knife, there is one who wants to cut bread and another one who wants to cut humans. But many people don't understand what's the real problem behind the scenes. Do you really think that any billionaire cares about your or your family's health and safety? No, all this bullshit exists because they are afraid of competition. Politicians don't come in politics to serve people, they don't want to be slaves, no, they come in politics to gain power and control everything. Elites use banks for money laundering and illegal activities because they control banks and there is no one to reveal them or judge them but here is the thing, they don't want others with the same privileges because they will become their competitors and then they start all this bullshit bitcoin and monero darknet propaganda.

[vv181]

For monero, its anonymous nature can make it potentially more challenging for exchanges to verify the source of deposits so it is as anonymous as doing a mixer on bitcoin.

No, Monero's anonymity features are inherent within its technologies, so it is not on par with Bitcoin mixer, especially if it is the centralized one.

I agree with you, for monero, the transactions cannot be tracked and tend to be the same as btc mixer earlier tends to be misused.

It's not the same, and there is no proof mixed bitcoins are mostly used for illicit purposes.


Bear in mind, that blockchain forensic/analytics that claims to filter "good" coins and "bad" coins is founded on an unscientific basis. They cannot show the statistical error rate, like the margin of error from the software or algorithm they produced, so, we should not be sure that just because the coin history is obscured or hidden, it would be automatically misused for illicit activities.

[jrrsparkles]

I remember monero got delisted from a few exchanges for the same reason that you mentioned but its still a surprise to see it on an exchange like Binance, I don't think centralized exchanges can keep Monero on their list for too long especially more and more regulations are coming up but also you can see the most existed pair is USDT for monero on centralized exchanges so it means if they have suspicious they can simply block the converted funds in a single click.

[Elpeor00]

As others have pointed, some centralized exchanges have delisted monero and other privacy coins, my guess is that CEXs will allow it for as long as they can get away with it, the smaller, no KYC ones will keep it the more, but the bigger ones will delist it, as the regulation tightens around them... and that's good for both monero and the crypto users as a whole

It will give us fewer reasons to use a CEX, can make DEXs more popular among privacy coin users and actually implies the blockchain analytics can't grapple with monero privacy features, giving us a precedent about its limits