Crypto regulations by the Financial Action Task Force (FATF) may finally be the trigger to reduce Bitcoin’s and Ether’s market cap dominance.
The two digital assets have been crypto users’ favorite coins including for criminal activities. According to CipherTrace Analysis, a good brand name has been the strongest selling points for Bitcoin and Ethereum. The firm’s CEO, David Jevans, recently shared these insights at a conference held by the Chamber of Digital Commerce.
David went on to further confirm that over 90% of identified criminal activities within the crypto sphere leverage BTC and ETH for their activities. The new proposed FATF cryptocurrency regulations are therefore likely to cause a shift in CipherTrace’s stats given one of the requirements will be personal data collection by existing crypto exchanges.
In David’s opinion, the process of identification will only make Bitcoin more like a banking avenue as opposed to preserving the fundamental decentralization aspect. Criminals that have been using BTC will, in turn, react by moving to private coins like Monero and Dash. The FATF may ‘solve’ one problem but give rise to a bigger problem which would be complete anonymity by International crime stakeholders using crypto coin ecosystems.
CipherTrace has been a major stats provider for the fast-growing crypto and blockchain industry. At the moment, the company’s resources track over 500 crypto tokens with top 100 crypto volumes mostly within its radar. The firm’s intelligence covers close to 90% of transactions within the crypto sphere hence their efficiency.
However, CipherTrace has been keen to note that they will not support private coins like Monero and Zcash. Other crypto stakeholders that recently delisted Monero and its private coin competitors include OKEx, South Korea.