Will privacy coins have future? (Bittrex delisting privacy coins)

[rekter 8129]

This has been a long time coming. Bittrex just announced that it will delist privacy coin pairs like ZEC, XMR and DASH. And my guess is that this is just a start and this trend will probably spread amongst all the highly regulated exchanges later. It's not even up to these exchanges if they want to keep those pairs or not.

 

While privacy itself is wanted by nearly every company out there, we have to remember that anonymity is not same thing as privacy. Privacy in the context of human rights and business are things that are not going anywhere, but they have to be complying with the legal framework.

 

Coins that have anonymity are making impossible to exchanges work within any regulatory framework and FATF and other organisations must be breathing on their necks constantly. So this will keep happening and even more in the future imho.

 

 

 

What do you think? Will this trend continue and will exchanges keep delisting privacy coins? Will privacy coins have future?

 

 

Delisting story source:

https://www.coindesk.com/bittrex-to-delist-privacy-coins-monero-dash-and-zcash

 

Edited January 2, 2021 by rekter
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[Jromz 2158]

Well, it makes sense that an US based exchange can make this kind of moves to fulfill strict regulations to fight against criminal activity. Possibly this trend may continue as cryptocurrencies become more regulated around the world. Let's remember that South Korean exchanges have also made similar moves to comply local government regulations. I don't think this could be the end of so-called "privacy coins", I would say that people would just find it more difficult to make transactions with this coins. 

Edited January 4, 2021 by Jromz
typo

[cryptovlek 2597]

This is bad and the prices of privacy coins will suffer more with more delistings, Bittrex is not even a top exchange just a regional one that is very strict with their procedures. If this happens with Coinbase it will be a big blow for privacy coins. If a spiral happens and privacy coins are delisted by most exchanges, it will not make them obsolete. They will still be used but won't be available to everyone to trade. But those that want to use them for the reasons they do, they will find ways to buy and use them. It doesn't make a difference and banning privacy cons will not stop the darknet markets.

[Whited35 15285]

12 hours ago, rekter said:

What do you think? Will this trend continue and will exchanges keep delisting privacy coins? Will privacy coins have future?

This trend will continue and regulated exchange platforms based on UK, USA and other European countries might follow the same track, governments are getting worried to collect the tax and it is ridiculous to see the chaos. In fact, cryptocurrencies can not be completely banned so they are attempting to put more obstacles for using crypto to convert into the cash on the different exchange sites. You know, transactions records from the privacy coins are not as transparent as of Bitcoin and other non-privacy altcoins but still blockchain analysis company like Ciphertrace registered two patents claiming like they are able to trace transactions on the privacy coin's blockchain network. Check it https://www.financemagnates.com/cryptocurrency/news/is-monero-still-a-privacy-coin-ciphertrace-files-2nd-xmr-tracing-patent/ !

 

[Raqeebzy 6456]

12 hours ago, rekter said:

What do you think? Will this trend continue and will exchanges keep delisting privacy coins? Will privacy coins have future?

Yes. The earlier we forget about privacy in cryptocurrency, the better. Of all properties of certain cryptocurrencies, privacy tends to upset the government the most and they will go to any extent to end it. So long as exchanges are regulated by governments in every region and are affected by the laws, things like this are bound to happen and we should probably expect more of this.

[Quickbee 26]

It is disappointing to know that an exchange like Bittrex is delisting privacy coins. This may prompt other exchanges to do the same. But I don't think this will happen and this seems to be an isolated case.

[rekter 8129]

3 hours ago, cryptovlek said:

This is bad and the prices of privacy coins will suffer more with more delistings, Bittrex is not even a top exchange just a regional one that is very strict with their procedures. If this happens with Coinbase it will be a big blow for privacy coins. If a spiral happens and privacy coins are delisted by most exchanges, it will not make them obsolete. They will still be used but won't be available to everyone to trade. But those that want to use them for the reasons they do, they will find ways to buy and use them. It doesn't make a difference and banning privacy cons will not stop the darknet markets.

Coinbase is still being cautious about privacy coins. I personally see most exchanges delisting them as a matter of time. Regulators will fight one fight at the time and this will be a slow process.

https://decrypt.co/36731/heres-why-coinbase-still-hasnt-listed-monero

 

1 hour ago, Quickbee said:

It is disappointing to know that an exchange like Bittrex is delisting privacy coins. This may prompt other exchanges to do the same. But I don't think this will happen and this seems to be an isolated case.

Like i said, the decision was not really up to Bittrex. If other exchanges want to fight any legal disputes it will probably end up costing them more money then they gain by keeping the trading pairs.

 

1 hour ago, Raqeebzy said:

Yes. The earlier we forget about privacy in cryptocurrency, the better. Of all properties of certain cryptocurrencies, privacy tends to upset the government the most and they will go to any extent to end it. So long as exchanges are regulated by governments in every region and are affected by the laws, things like this are bound to happen and we should probably expect more of this.

This is a hard pickle. While i am certain that exchanges will eventually delist them, most people thought that it would be certain that bitcoin would not meet the regulations either and trading it would be banned as well. There's many kinds of approaches with privacy coins and some of them might be more regulatory friendly then others.

 

1 hour ago, Whited35 said:

This trend will continue and regulated exchange platforms based on UK, USA and other European countries might follow the same track, governments are getting worried to collect the tax and it is ridiculous to see the chaos. In fact, cryptocurrencies can not be completely banned so they are attempting to put more obstacles for using crypto to convert into the cash on the different exchange sites. You know, transactions records from the privacy coins are not as transparent as of Bitcoin and other non-privacy altcoins but still blockchain analysis company like Ciphertrace registered two patents claiming like they are able to trace transactions on the privacy coin's blockchain network. Check it https://www.financemagnates.com/cryptocurrency/news/is-monero-still-a-privacy-coin-ciphertrace-files-2nd-xmr-tracing-patent/ !

 

Yeah, i agree with you with all your points. And honestly i am baffled why monero has any value if those Ciphertrace patents are working. Literally only selling point about monero was their privacy.

 

8 hours ago, Jromz said:

Well, it makes sense that an US based exchanged can make this kind of moves to fulfill strict regulations to fight against criminal activity. Possibly this trend may continue as cryptocurrencies become more regulated around the world. Let's remember that South Korean exchanges have also made similar moves to comply local government regulations. I don't think this could be the end of so-called "privacy coins", I would say that people would just find it more difficult to make transactions with this coins. 

Yeah, i don't think that it would kill them but it would hurt them a lot. And it all depends about the coin. For now current regulations haven't banned coins with anonymous transactions to my knowledge, but imho it will come to that.

 

I am betting that most of the world follow these regulations if they end up being solid enough. Every country see anonymous money as a potential threat to their system. But like i already said in other answer that most people thought that btc wouldn't pass regulations either.

[Raqeebzy 6456]

14 minutes ago, rekter said:

This is a hard pickle. While i am certain that exchanges will eventually delist them, most people thought that it would be certain that bitcoin would not meet the regulations either and trading it would be banned as well. There's many kinds of approaches with privacy coins and some of them might be more regulatory friendly then others.

Bitcoin?. This again I think it depends on different regions and the type of regulations. Bitcoin is definitely more of a privacy coins as monero and dash or some others. I believe the regulations to a large extent won't affect BTC especially. We hope it don't.

[sinseoul 0]

If Bittrex, one of the large cryptocurrency exchange out there started this, then it is not impossible that other big exchanges will follow Bittrex's action. Specially those privacy coins have issues with SEC, they will probably delist those.

[velasco19 1753]

It is very likely that privacy coins will be in the spotlight this whole year, Bittrex removing them can generate a knock-on effect on other exchanges and it is understandable that they do not want to get into legal trouble with the SEC and are taking their precautions.
It's hard to imagine the future of privacy coins, but when adoption begins, there will be regulations and at some point it will be mandatory to have a KYC on an exchange.

[Fixfin 2569]

I'm afraid there is some testing done on the crypto market lately and while I didn't care about XRP the timing and the results of Bittrex delisting Monero and Zcash are similar. I hope there is no plan to test how Bitcoin will be affected by these, and there won't be some plan unfolding slowly, but I heard rumours next for some more possible bad news that could come with the mandatory KYC of all our wallets and an upcoming regulation on stable coins. It doesn't look that all of these are not connected and taking place one after another. While all are different they are tying together to a possibility there is a careful plan. However anything that is bad for other cryptocurrenices only helps Bitcoin.

[rekter 8129]

56 minutes ago, velasco19 said:

It's hard to imagine the future of privacy coins, but when adoption begins, there will be regulations and at some point it will be mandatory to have a KYC on an exchange.

Kyc in the exchange woudn't help privacy coins if they will be ruled illegal to host. Kyc should be implemented directly to protocol and wallet addresses and it wouldn't make sense for dash, xmr or zec to implement such solution.

 

4 hours ago, Raqeebzy said:

Bitcoin?. This again I think it depends on different regions and the type of regulations. Bitcoin is definitely more of a privacy coins as monero and dash or some others. I believe the regulations to a large extent won't affect BTC especially. We hope it don't.

What i meant that in the bitcoin's past the uncertainty about regulations were a thing. Now it's pretty clear that regulators don't want to exclude it, but to work with it.

[kyoukage01 3181]

On 1/3/2021 at 6:48 AM, rekter said:

What do you think? Will this trend continue and will exchanges keep delisting privacy coins? Will privacy coins have future?

It will be up to the other major exchanges (outside of US or EU) whether they keep those coins on their platforms or not. The exchanges that will keep them will be regarded as heroes in the cryptocurrency world, but then again I can imagine the intense pressure on them by other entities. If the remaining exchanges give in to the pressure, it's game over for those coins.

 

The coins might resort to go underground as a result, and that will doom them if they'll be singled out for use on criminal activities and crypto users cease dealing with them. Coins with anonymity are quite notorious as long as the governments' police force is concerned.

 

Edited January 4, 2021 by kyoukage01

[rekter 8129]

2 hours ago, kyoukage01 said:

It will be up to the other major exchanges (outside of US or EU) whether they keep those coins on their platforms or not. The exchanges that will keep them will be regarded as heroes in the cryptocurrency world, but then again I can imagine the intense pressure on them by other entities. If the remaining exchanges give in to the pressure, it's game over for those coins.

I personally don't think that exchanges would want to fight it in courts if it comes to that because if they lose they might end up paying way more in fines and court expenses then ever gaining with trading fees. And most countries would like to play ball with EU and US demands and even if they don't, it would make sense for them to have strict AML as well. 

 

3 hours ago, kyoukage01 said:

The coins might resort to go underground as a result, and that will doom them if they'll be singled out for use on criminal activities and crypto users cease dealing with them. Coins with anonymity are quite notorious as long as the governments' police force is concerned.

On the other hand, in the past people were speculating that bitcoin would go underground at some point. So there's a change that regulators give up to some of these coins if they can't be used for escaping the legal framework. But most of these coins wouldn't have any purpose after such changes in the code.

 

[Ridam 7455]

With all these recent decision at leats we can say that Regulatories can't track these currrencies for sure. And we can confirm that through this. Currently there is negativity spreading about  Bittrex Exchange and many have already started to boycott it and I'm also kinda disliking this decision.

With Recent Announcement from.FinCen and as its asking US citizens to report even if they are holding fund in foreign exchanges it seems other US based exchanges would need to do that for regulation. Talking about future, such decision makes skeptic.

[Dorjoy12 8962]

On 1/3/2021 at 4:48 AM, rekter said:

What do you think? Will this trend continue and will exchanges keep delisting privacy coins? Will privacy coins have future

I am still confused  that why suddenly  bittrex announced  this news to remove  privacy  coin from their exchange though  those all the privacy  coin showing quite well in crypto market..   Again why every  where the usa  Secret  service  makes a problem with crypto as it make problem with xrp?  

[miskyming 1588]

I don't know if these privacy coins have a future but if this keeps delisting privacy coins in some exchanges then maybe the privacy coins will be end. I don't know what is the reason of delisting those privacy coins in bittrex maybe some of the traders reported the problem of transaction of privacy coins in their exchange and the support can not help it because they can not view the transactions or wallet the address.

[Obliv0n 333]

In the case of DASH, it is somewhat complicated to consider it a privacy coin similar to XMR for example, since lately the CEO and developers of the coin, are working to turn it into something different, however the concept that is had about DASH is of a trend based on privacy.

 

The situation with these coins was to be expected, especially since the FBI has its eye on them, little by little they will be withdrawn, that is clear, a sanction from some important body is enough and they will go to the file of "prohibed".

[rekter 8129]

1 hour ago, Dorjoy12 said:

I am still confused  that why suddenly  bittrex announced  this news to remove  privacy  coin from their exchange though  those all the privacy  coin showing quite well in crypto market..   Again why every  where the usa  Secret  service  makes a problem with crypto as it make problem with xrp?  

Secret service doesn't have a problem with XRP. SEC has a problem with xrp because they think XRP sale might ha broken federal securities laws. Privacy coins might not yet illegal to offer by exchanges but they might end up being that. Maybe they are just being early.

[zhoutong 2188]

Bittrex probably acted on its own. There has been some speculation for a long time about the delisting of privacy coins, but I think the regulated exchanges and Binance will only do that only if they are met with the government action against them. This will not have a big problem for any privacy coin but to the investors every exchange delisting them creates bad price action. 

[susan8929 811]

I think that private currencies have a future, but not in the traditional exchanges, but in the more private and anonymous ones. Although in that case, the problem would also be volume, so the future for private currencies seems complicated. Although I still think they will exist. However, it is possible that in the coming weeks they will fall too much in price.
Anyway, I think that this kind of thing was predictable because there will be more and more regulations and that kind of cryptocurrencies are sometimes used to carry out scams or ask for rewards in exchange for private information, so exchanges are forced to unlisten them.
 

[moonfox 274]

It is a question of time to do something with privacy cryptocurrencies, governments want to know all about money flows. about people who gain profit, for security and taxes

[kyoukage01 3181]

16 hours ago, rekter said:

I personally don't think that exchanges would want to fight it in courts if it comes to that because if they lose they might end up paying way more in fines and court expenses then ever gaining with trading fees. And most countries would like to play ball with EU and US demands and even if they don't, it would make sense for them to have strict AML as well. 

They wouldn't. But what might happen when the other exchanges insist is that they might be forced to close, in which they wouldn't want that kind of ending. If all the exchanges accept, the cryptocurrency community will once again lose, and relenting with the demands of delisting privacy coins will be another big win for the government side; they've already gotten away with asking for KYC, levying taxes, and other such things.

 

At least DASH developers/executives are making moves to present their case to Bittrex. I wonder what the guys behind the other coins are planning to do with this news.

 

[percare 3192]

Privacy coins will probably be used even more as the internet money will keep expanding. It is the only way to have safety, otherwise there will be scammers having files of everybody and their holdings and attack each one personally and with many ways. We can't risk having our wallets exposed and our balances known to criminals so for this reason no matter if a government ban privacy coins, they will keep increasing in adoption.

[Dorjoy12 8962]

18 hours ago, rekter said:

Secret service doesn't have a problem with XRP. SEC has a problem with xrp because they think XRP sale might ha broken federal securities laws. Privacy coins might not yet illegal to offer by exchanges but they might end up being that. Maybe they are just being early.

As far as i know only usa based exchange  site doing this delisting  of privacy  coin and sec is behind this point..  By the way, i do not think privacy  coin Will  die like this as still lot of exchange  site allowing  privacy  coin to trade  time to time and some might  still listing  privacy  coin..  Its feel like usa based exchange  site getting  now a days  good pressure  from sec @rekter