German Finance Ministry: Criminal Use Of Monero And Zcash Is Rising

The German finance ministry is in the Zcash news today for stating that the criminal use of Zcash (ZEC) along with the use of Monero (XMR) is rising. In a recent report, the German ministry added that the use of anonymous crypto assets might one day replace the one of Bitcoin on the dark web.

The report in which the German finance ministry is featured is highlighting the differences between different crypto assets. While blockchain forensics firms can often link an individual to a Bitcoin wallet, anonymity-preserving protocols limit their efficacy.

Focused on money laundering and terrorist financing, the report is titled “The First National Risk Analysis” and was published by Germany’s Federal Ministry of Finance on October 11. The ministry started assessing the existing and future risks that could contribute to the proliferation of such financial crimes in December 2017.

Around 35 other federal and state authorities joined the German finance ministry in its research. The analysis that they carried out identifies the use of crypto assets as a potential risk factor for the future. However, it also makes a clear distinction between pseudo-anonymous cryptos such as Bitcoin and privacy-oriented coins such as Monero and Zcash.

The Monero news also show that the German finance ministry thinks that the risk posed by anonymous cryptocurrencies is far greater than the one of the likes of Bitcoin. Their anonymous nature is what makes policing criminal acts associated with their use much tougher. Therefore, criminals may start using Monero (XMR) and Zcash (ZEC) more frequently.

The ministry also observed the use on the dark web or as a method of financing terrorism and how it still remains low. However, the popularity for these anonymous cryptocurrencies is definitely growing.

In the full report, the German finance ministry also states that there is not much evidence of any cryptocurrency being used in connection with terrorist financing in Germany. However, the ministry claims to have identified its use in relation to occasional groups of religious extremists and the far-right.

What’s also interesting is their stance on cash. As the ministry said:

“The use of cash, in contrast to the use of pseudonymous crypto assets, leaves no traceable footprint and is easy to handle, so it can be assumed that, for example, the transfer of funds in the field of ​​terrorism financing alongside hawala and money transfer service providers currently continues mainly via cash couriers.”