Changelly Crypto Exchange To Withhold Monero (XMR) If No User KYC Is Complete
The beginning days of cryptocurrency were rife with criminal involvement. Although those who first came forward with the idea to create Bitcoin as an anonymous currency did not have criminal enterprise in mind, the functionality of anonymous cryptos quickly became a cornerstone to illicit drug and weapons markets on the dark web. Millions of users would eventually flock to the Silk Road and its copycat sites, using Bitcoin and other cryptos to purchase dangerous drugs, weapons, or even data, and drawing the attention of law enforcement agencies all over the world.
But as these three-letter organizations became more interested in regulating the markets causing problems in their own countries, the privacy of Bitcoin was somewhat compromised. According to many experts, Bitcoin expenditures can be somewhat easily tracked by governmental agencies, many of whom have poured hundreds of millions of dollars into researching complex new methods of tracking and following money spent on the dark web via cryptocurrencies like Bitcoin.
Privacy Coins Rise
It isn’t just Bitcoin that has seen a decrease in objective security. Additionally, cryptos that captivated the public attention and gained major popularity last year have been the target of concerted institutional efforts to regulate.
Still, though, more than just criminals are interested in the concept of security and privacy within the financial world. Millions of users flocked to cryptocurrencies initially with the intention of avoiding unfair economic conditions in their home territory, or perhaps because of their deep-seeded philosophical convictions in favor of financial freedom and privacy.
To account for the intense market demand for cryptos providing the trademark security which brought many initial investors to Bitcoin, several new currencies have been crafted with the specific purpose and tagline of providing more privacy and security to their users.
According to a recent announcement, however, this might not actually be the case.
Monero Theft Possible
Monero is one cryptocurrency on the list of privacy coins. Known for its serious protocols to protect the privacy of its users, Monero is a favorite among several groups of people. Though some of these users are drug dealers, money launderers, and terrorists who use the cryptocurrency to try to hide their misdeeds, industry experts argue that these individuals represent a loud—but small—majority among users of privacy coins like Monero.
Despite the facts, the Prague cryptocurrency exchange Changelly has acted to restrict the use and trade of Monero on its own exchange servers. Monero had been a functioning privacy coin on the Changelly markets for several months, but recent concerns raised by some members of the community have deemed the coin to be “high risk.”
Now, the exchange has spoken out on their right to cease transactions and hold coins that they deem to be a part of “suspicious transactions.” The core of the argument for Changelly has been that, while they do not have an inherent problem with users of the popular XMR currency, they will continue to enforce their strict anti-suspicious activity policy known as KYC. For XMR, they found that violations were common, and that the crypto will subsequently be screened harder than usual.