Government regulation and the future of privacy coins

Anonymous Coins: Living Up to Their Names

In its developmental stages, Bitcoin had earned a name as a cryptocurrency that provides complete anonymity to its users, drawing many privacy lovers to it. Today, that notion has changed completely. Though it might not be possible to trace transactions made on the Bitcoin blockchain to a specific identity, other details, including location and amount of transactions, are visible. And the fact that linking your identity to the blockchain will expose your transactions to the public ledger shows that, after all, the world’s largest and most popular cryptocurrency isn’t completely anonymous. In turn, privacy-focused coins have come to save the day.

Government Crackdown on Privacy Coins

Though there has not been a comprehensive regulatory oversight on cryptocurrencies in general, many governments are devising ways of preventing criminals from using these digital currencies as their go-to financial system. These governments are also making sure that traders and investors in this space pay tax.

But can Privacy-Focused Coins be Stopped by Governments?

Government regulation would surely hamper the growth of privacy coins, but not completely. One specific area that would be hard hit is the ability to exchange these coins for fiat or other cryptocurrencies. However, as the cryptocurrency space grows, privacy would be an integral part of this sector, and privacy coins might potentially rule that space.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store