Dash, ZEC, and Monero also reach boiling point. Bittrex, a US-based crypto exchange, announced on Twitter on New Year’s Day. It was delisting three common privacy coins: Monero reach boiling point (XMR), Zcash (ZEC), and Dash. A link promised more details, but those who clicked on it learned nothing about why trading in those tokens would cease on January 15.
Even so, the news couldn’t have been totally unforeseen. Regulators in the United States and elsewhere have been keeping a wary eye on privacy coins lately. Unlike Bitcoin (BTC) and Ether (ETH), the coins offer greater anonymity by concealing users’ addresses and transaction amounts, making transactions more difficult to track. Money laundering, and possibly other illegal activities, according to government agencies.
The Financial Crimes Enforcement Network of the US Treasury Department. For example, noted in a proposed rule change on Dec 23. that anonymity-enhanced cryptocurrencies, or AECs. Dash, ZEC, and Monero reach boiling point. Clearly:
What are some potential risks of using virtual currencies and Monero reach boiling point?
Money laundering and terrorist funding are both possible with convertible virtual currencies that can be traded for real money or other virtual currencies.
One of the most significant risks is the relative degree of anonymity provided. This is especially true of decentralised virtual currencies like Bitcoin. Which have no central administering authority and are not subject to central control or oversight.
There are no names or other means of identifying customers.. Which serve as accounts, and there is no customer verification mechanism. There is also no anti-money laundering (AML) programme in place to track and detect suspicious transaction patterns.
The global scope of virtual currencies also raises the possible risks even further. And fund transfers often include complex infrastructures. and numerous agencies distributed through multiple jurisdictions.
What are some benefits of virtual currencies?
The potential of virtual currency is as follows:
- Transaction reliability and processing costs for purchases and fund transfers may be increased.
- Facilitate micro-payments – due to high transaction costs, low-cost goods/services. A one-time game or music download) are often unable. To be sold digitally at a cost per unit that is sufficient (e.g. credit card fees).
- Foreign remittances should be made easier.
- Be held as an investment