Note: Europe targets Monero (XMR), Dash (DASH), and Zcash (ZEC)

The European Union is reportedly planning to restrict or ban the use of privacy coins. An anonymous EU diplomat reported this to the CoinDesk platform. This puts currencies like Monero (XMR), Dash (DASH) and Zcash (ZEC) in dangerous waters. What is this threat?

ban privacy coins

According to the anonymous diplomat, EU legislators are working on a proposal for an anti-money laundering policy. As the name suggests, it aims to prevent money laundering. This has been used as an argument against encryption for years, as many still see it as the ideal tool to do so. Which is a bit strange, since there is a lot more money being laundered through fiat money such as euros and dollars.

The legislator’s proposal would prohibit crypto providers from working with privacy coins. If executed, it can be highly damaging to popular cryptocurrencies such as Monero (XMR), Dash (DASH), and Zcash (ZEC).

It’s not official yet

An early draft of the bill stated that “credit, financial, and cryptocurrency service providers will be prohibited from holding…anonymous currencies.” The proposal, which would hurt private cash flows, has not yet been made official.

The question is whether the EU really wants to go that far and, if so, how it will work. They can ban core parties such as crypto companies from using these coins. But much of the cryptocurrency market is decentralized. That means it works without a central party.

Furthermore, it also means that even if these rules are implemented, the coins can still work just fine. It could very well be a price war as it is negative news for these privacy coins. An advantage of decentralized projects, however, is precisely that they are difficult to thwart through the intervention of a central party.

Source: Btc Direct

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