In the current times, the most prominent cryptocurrencies that are known for being anonymous are Zcash, Monero, and Dash. These currencies have been used widely among users who wish to keep their identities and privacy intact.
These cryptocurrencies are circulating in the majority of the countries as legal assets. However, the situation may change for these assets in the coming days. There are possibilities that these cryptocurrencies may get banned or cease operating in the entire world.
The main factor behind the scenario changing for the cryptocurrencies is the constant rise in crime and scams that are taking place through the blockchain networks. In recent years, there has been an enormous increase in ransomware attacks as well as money-laundering activities.
According to recent reports, the majority of the online ransomware and money laundering activities have been conducted with the usage of cryptocurrencies.
In recent years, several countries from around the globe have started looking for legislative solutions to tackle the money-laundering and ransomware cases. Few of the major countries that have become very strict are introducing legislation around the controlling of such cases include the U.S. and Japan.
Both the countries are in the process of banning Zcash, Monero, and Dash from the trading platforms operating in their regions.
Japan has become the first country to have already taken legislative action against Zcash, Monero, and Dash. The Financial Security Agency (FSA) has already announced the banning of these currencies in their regions.
However, the FSA banning these three cryptocurrencies does not mean that the users in the respective country will not be able to trade these currencies. Banning the cryptocurrencies does not mean that they have been made illegal but makes them extremely difficult to trade.
Due to this, the situation has become very difficult for the Japan-based cryptocurrency exchanges. These exchanges are required to report all the transactions and provide all the data surrounding these three cryptocurrencies to the Japanese authorities.
Now that the cryptocurrency industry has started gaining mainstream success and adoption, it is most likely that the crypto-exchanges will now start adopting the legislative requirements.
In order to gain more mainstream success, the exchanges are now adopting regulatory policies. The reason why the exchanges are doing this is to increase their user-base and bring in more investments.
However, doing this will pose a huge threat to the survival of privacy tokens such as Monero, Zcash, and Dash. Once the exchanges start adopting the ‘Know-Your-Customer’ and ‘Anti-Money Laundering’ regulations, they will have to make the harsh decision of de-listing Monero, Zcash, and Dash.
Since the beginning of the year 2021, several cryptocurrency exchanges have already banned these cryptocurrency exchanges. Some of the most prominent exchanges include Bitbay, Bithumb, Bittrex, and Huobi Korea.