Monero looks to calm down the regulators currently as the world has grown to be even more connected and the privacy therefore erodes. As per today’s monero news, we will find out why tokens such as XMR and Zcash made privacy their number one priority.
Tokens such as Monero make transactions hard to trace by using Ring signatures and stealth addresses. The methods help to hide the identities of both sides which is why the large scale adoption is due to a number of issues such as regulatory uncertainty, privacy, and increase in competition. Regulatory uncertainty has been over the heads of privacy coins since day one. Cryptocurrency markers saw different high profile exchanges delist these types of coins over the years as the most common occurrence was in Japan as the regulators made an effort to do so.
The biggest strength of these projects became the greatest weaknesses. If they survive, there has to be a clear path forward where they will be able to continue to operate while calming down the regulators. The developers recognized this hurdle and decided to change things, which is why Monero looks to calm them down. The efforts are expected to result in the completion and release of a new whitepaper which will be titled “The Fundamentals and Regulation of Privacy-Enabling cryptocurrencies.” As it implies, the new whitepaper will serve as a guideline for exchanges to follow them and will allow them to be listed in a regulatory compliant manner. Tari Labs’ Louis Willacy stated:
“While the authors support their findings with exhaustive research and detailed analysis, the whitepaper’s core conclusion is deceptively simple: Regulated financial institutions can comply with AML obligations when supporting privacy tokens. Period.”
The whitepaper is expected to be released any time now and it could be a huge boost for all coins. Coinbase for example is one of the reasons why the whitepaper is important. The company shared its thoughts on Monero indicating that while there’s no issue supporting the asset, it will not happen under these circumstances. CEO Brian Armstrong stated:
“Privacy coins are the next topic, one of the next on the horizon, among many. (The regulators) are very concerned, so we haven’t been able to list it at least in the way we want for those reasons. But, I think with enough time and vision, the regulators will be comfortable with that. Then, there will be another new issue on the horizon that will concern them.”
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