For additional reinforcing its anti-money laundering, the European Union is set to ban privacy coins and anonymous wallets for cryptocurrency through 2027.
There are two such privacy coins being banned by the regulators: Monero (XMR) and Zcash (ZEC), since they provide users with complete anonymity. Banning such assets through regulatory means reduces trading volume within the market and reduces liquidity on each trading platform domiciled within the EU.
Even nations with less restrictive data, privacy legislation encourage the use of privacy coins. Dubai’s liberal approach towards cryptocurrency draws projects and traders since it provides privacy functionality without sacrificing freedom of operation.
Privacy-focused digital currencies exhibit consistent demand in the market as Zcash and Monero remain market leaders in terms of market capitalization while they are able to survive by cracking regulatory standards for financial privacy protection.
Some jurisdictions have stringent regulatory requirements while other jurisdictions create favorable conditions which allow privacy coins to thrive for continued operation.
Success in the long term for privacy coins will be only feasible with their efficient handling of changing global regulatory regimes and the rise of cheaper trading options.
submitted by /u/Significant_Wave_634
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