Subsequent to the FSA’s rulings in Japan to ban privacy tokens, the South Korean Blockchain Association (SKBA), another self regulating body also released guidelines similar to the JVCEA’s. The SKBA framework was designed to prevent money laundering, insider trading, and other illegal activities.
Organizations like CryptoUK have already released similar industry guidelines earlier this year and exchanges are more likely to react to this advice and follow suit now based on the changes in Japan’s crypto landscape.
Last week in the United States, the US Secret Service have reportedly requested Congress to consider legislative action against privacy coins in an effort to combat their use for illicit purposes. One Congress member has already expressed that there is a need to regulate privacy coins and that “one of greatest emerging threats to U.S. national security is [the] illicit use of virtual or cryptocurrencies,”
Do Privacy tokens themselves pose such a big threat to national security?
Some may argue that a lot of illicit mining uses Monero, one of the main privacy-focused coins. However, the reality is that less than 1 percent of all cryptocurrency transactions are for illegal activities. Traditional financial methods, such as fiat currencies, wire transfers, etc., are used most of the time in regard to illegal buying and selling.
The main features of the blockchain and cryptocurrencies that appeal to the crypto market is that they are decentralized, immutable, and confidential, to a degree. These are also the attributes which will contribute to the long-term success of the crypto industry. It seems counterproductive to ban the use of coins for their confidential and privacy features.
Only time will tell what effect, if any, the bans on privacy tokens will have on the crypto market. Given the other attributes that are making the market so attractive for so many participants, it will likely have minimal impact.
One thing to remember is some degree of privacy still exists without privacy tokens. The very nature of cryptocurrency is that it is based on cryptography technology. Transactions can still be secure and private. For instance, cold wallets do not require any personal information to register to them.
Privacy and security are paramount to the CRIP.TO project. The CRIP.TO Black hardware device will include a crypto wallet that is always encrypted. Given the fact that it is rarely connected to the Internet and when it is, all communications are encrypted with the company’s special recipe of encryption algorithms, the privacy of CRIP.TO customers’ bitcoin transactions are as well protected as their normal communications. And their crypto coins are also secure.
In fact, CRIP.TO feels cryptocurrencies are one of the most secure means of handling financial transactions over the internet. So much so that the company will be conducting an initial coin offering (ICO) soon to fund a variety of corporate development and operational needs and will use its coins for CRIP.TO services. All the details are here.
Governments have a job to do but normal citizens and companies have the right to communicate fearlessly. CRIP.TO thinks that extends to cryptocurrency transactions as well. Check out our solutions at CRIP.TO.