Sunday, June 16, 2019

French Finance Committee Proposes Ban on Privacy Coins

According to a recently released report, the Finance Committee of France’s National Assembly has suggested that a complete ban should be placed on the privacy-focused cryptocurrencies.

In view of the fact that the report went into details of the use of digital assets and the blockchain technology, its introductory part was very captivating as it presented the opinion of Eric Woerth, the committee’s president, which is not friendly at all towards cryptocurrencies that provide anonymity to the users.

“We must be aware of the problems that [cryptocurrencies] can pose in terms of fraud, tax evasion, money laundering or fraud, or energy consumption,” Woerth said.

“It would also have been appropriate to propose a ban on the dissemination and trade in [cryptocurrencies built] to ensure complete anonymity by preventing any identification procedure by design…This is the case for a certain number of [cryptocurrencies] (Monero, PIVX, DeepOnion, Zcash…) whose purpose is to bypass any possibility of identifying the holders. To date, regulation has not gone that far.”

In any event, the report did not clarify the level of ban the committee is proposing as a diversified amount of privacy coins already exist in the market.

Also, the report suggested that an international regulatory framework should be set up which will supervise the digital asset class.

Privacy Coin Users Continue To Grow

A lot of privacy coins were introduced into the market even before cryptocurrency experienced a boom in 2017. These coins were created for the purpose of providing users with total anonymity which is one of the pillars of the blockchain technology. When cryptocurrencies like Bitcoin or Ethereum are examined, it will be discovered that they and similar coins like them can be trailed to the block at which they were mined, but this is not the case with privacy coins.

Therefore, criminals have chosen privacy-oriented digital assets for extortion. Monero had fallen victim to the attacks of criminals in the Ransomware attacks, becoming somewhat a favourite.

Other than Monero and ZCash, there are other end-to-end privacy coins that have been introduced to the market. These coins are customizable and are based on the Mimblewimble protocol and give users the freedom to determine the privacy levels of their choice.

The president went ahead to add the following statement:

“The distinction between the different uses of [cryptocurrencies] must continue, to establish a finer and more precise regulation protector of the general interest, as well as the private interest of the entrepreneurs of this domain.”

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