Monero, the privacy coin, and its fundamental features – ring signature, ring confidential transactions, and stealth addresses, have received a lot of attention in the past. However, in a recent edition of the Keiser Report, Nym Technologies’ CEO, Harry Halpin, said that Monero and Zcash were basically “privatizing the blockchain” itself and the sensitive data can be easily viewed by fraudulent entities. To prevent network-level transactions to become visible to a third party entity like a well-funded company, the CEO said,
“When you want to send a Bitcoin transaction you’re doing a peer-to-peer broadcast on the network level so even if you use like zero knowledge proves and you use ring signatures like Monero or whatever it is on the chain itself that peer-to-peer traffic is actually capturable/recordable by any enemy who is watching the network”
Tor, which started out as a Navy research project, has been added to Nym as a solution to conceal sensitive data on its platform, which according to Halpin, makes Nym better than Monero and ZCash. He added,
“Tor is like a really great product if your enemy is like the government of Venezuela the government of Iran some government which can’t see the entire internet or some company which can only see a small portion of the internet”
In light of the ability of some entities to be able to monitor the entire internet, an older design called the mix networking or “mixnet” can help conceal exposure of network data, he said. The CEO added that mix networking destroys the pattern of the data sent, first by reshuffling it, then by manipulating the timelines data sent and lastly, by sending “dummy packets” of data.
Further, he also clarified that Nym does not take grants from the US government, but is an open-sourced software ran by volunteers. He added that the firm is non-profit and does not take incentives.
FATF Pressures OKEx to Delist Monero, Zcash, Dash; Litecoin Next?
A guideline issued by the Financial Action Task Force (FATF) is prompting OKEx to delist popular privacy-centering cryptocurrencies.
The Korean wing of the cryptocurrency firm announced on Monday that it is going to stop trading of Monero, Zcash, Dash, Horizen, and Super Bitcoin on its exchange. All the five assets, in one way or another, allows users to hide their financial transactions by introducing additional layers of security.
OKEx said in a note that the five cryptocurrencies could “violate laws or regulations/policies of government agencies and major agencies.” The exchange was citing FATF, an intergovernmental organization that combats money laundering on a global scale. The task force in October 2018 enforced a so-called ‘travel rule,’ which requires cryptocurrency exchanges to obtain relevant users’ information, including the virtual wallet addresses of senders and receivers involved in a cryptocurrency transaction.
Privacy coins such as Monero and Zcash assists users in hiding those details. That makes it difficult for cryptocurrency firms to monitor and report those transactions to FATF. OKEx said it would delist Monero, Zcash, Dash, Horizen, and Super Bitcoin, merely to keep itself in line of the global watchdog’s directives.
The move has made OKEx the second exchange to have gone after anonymity-focused coins under regulatory pressure. Earlier in June 2018, way before FATF had imposed the ‘travel rule,’ Japan-based Coincheck had removed Monero, Zcash, and Dash from its exchange after facing pressure from the Financial Services Agency (FSA).
OKEx would disable the privacy coins’ deposits on October 10, 2019. Nevertheless, users will still be able to withdraw their privacy coins to their wallet addresses until December 10, 2019.
Troubles for Litecoin Ahead?
As exchanges operating from FATF member states follow suit and start delisting privacy coin, the move could spell troubles on the world’s fifth-largest cryptocurrency by market cap.
The $4.5 billion cryptoasset Litecoin in August announced that it is going to become a privacy coin. Founder Charlie Lee went ahead and admitted that they are going to introduce “confidential transactions” in a “future release of the the full [litecoin] node” in 2019 – after the online community accused him and core developers of abandoning Litecoin.
The announcement kept Litecoin investors happy, as it maintained the coin’s bullish narrative intact. The LTC/USD exchange rate had risen by more than 500 percent between December 2018 and July 2019 – before Lee confirmed the development of “confidential transactions.” The upsurge majorly came on the shoulders of Litecoin’s halving event, which earlier this year reduce the cryptocurrency’s supply-rate by half.
Litecoin price slipped by more than 50 percent from its YTD high | Image credits: TradingView.com
The LTC/USD pair is now down by more than 50 percent, driven by higher demand for rival asset bitcoin. And as the Litecoin project goes ahead with its plans of becoming an anonymity-focused coin, the likelihood of it being rejected by exchanges operating from FATF’s 39 member states could go higher.
OKEx Korea Delists Monero, Dash, Privacy-Cryptos Over FATF Demands
The South Korean arm of cryptocurrency exchange OKEx is removing support for five major altcoins due to new international regulations.
FATF rules halt privacy coins trading
In a blog post originally published on Sept. 10, OKEx Korea confirmed it would halt trading of Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC) on Oct. 10.
The reason, said the exchange, is that as since they are focused on privacy, the coins fall foul of new guidelines set out by the intergovernmental body the Financial Action Task Force, or FATF.
“Support for trading of 5 different cryptocurrencies, XMR, DASH, ZEC, ZEN, SBTC, will be terminated,” the blog post reads.
As Cointelegraph reported, the sweeping changes to crypto transaction rules demand businesses to identify the two parties sending funds to each other if a transaction is worth more than around $1,000.
More exchanges could follow
More than 200 countries should theoretically implement the rules by June 2020, despite concerns that doing so is physically impossible for many decentralized blockchains.
The five cryptocurrencies outlined by OKEx all make it all but impossible to identify the sender and recipient of a transaction by design.
An OKEx representative told Cointelegraph that the coins will be delisted only on OKEx.co.kr. But they will remain listed on the global OKEx platform.
Monero price analysis: XMR/USD ripe for more declines
- Monero leads the major cryptocurrencies in declines after shedding at least 3% in the Asian session on Thursday.
- Monero is pressing down after filing to clear $74 level resistance; downtrend is likely to test $70.00 support.
- Technical indicators are currently adjusting to the reversal motion hinting that more declines will dominance the coming sessions.
The bear action is in full swing mode at least for Monero. With declines rising as high as 3% during the Asian trading session on Thursday, XMR is the leader among the biggest losers. After opening the session at $74.2199, the bears thrust Monero further down to lows around $71.97. The high formed at $74.44 immediately after the opening session is now in the rearview as the crypto seeks to explore more of the downside.
Looking at the 4-hour chart, Monero managed to force a reversal on finding balance at the main trendline support. The recovery stepped past the resistance at $74 but failed to test the simple moving average resistances. The SMA 100 is hindering growth at $75.032 while SMA 200 is standing in the way at $75.31. The ongoing reversal broke below another intermediate trendline (dotted) and is likely to retest $70 if the downtrend continues.
Technical indicators are currently adjusting to the reversal motion. The Relative Strength Index (RSI) is heading south after breaking the ascending pattern. At the same time, the Moving Average Convergence Divergence (MACD) has been barred from accessing the positive region even though it has forged a recovery from -0.8351. The growing bearish divergence is a key signal for the rising selling influence.