Privacy Dies Hard – Bitcoin (BTC) was founded on the values theorized by the Cypherpunks. Among these values, the Protection of private life is a focal point of the Cypherpunk ideology. Unfortunately, faced with mounting pressure from regulators, privacy corners are at the heart of tormented.
The privacy corners : persona non grata at Huobi
Huobi is an angular platform of the cryptocurrency ecosystem. Originally founded in China, the company now has offices around the world. Thus, we find Huobi in Hong Kong, South Korea, Japan and the United States.
strong$1 billion of daily volume, Huobi is positioned at the 8th place centralized trading platforms in terms of volume.
Unfortunately, the platform has just taken a radical decision against privacy-enhancing cryptocurrencies, or privacy corners. As a reminder, these cryptocurrencies have the particularity of obfuscating transactions so that it is impossible to trace the issuer or the recipient of it.
Thus, on September 12, the platform announcement remove all of the privacy corners of its platform. In total, 7 cryptocurrencies are affected by this withdrawal:
- Dash (DASH);
- Decred (DCR);
- Firo (FIRO);
- Monero (XMR);
- Verge (XVG);
- ZCash (ZEC);
- Horizen (ZEN).
Deposits for these tokens were stopped on September 12. The total withdrawal of these cryptocurrencies from Huobi will be from September 19. Users have until that date to withdraw the privacy coins in question from the platform.
In its announcement, Huobi explains that the withdrawal of these cryptocurrencies is set up to “Strictly comply with the compliance policies of each country and region” in which the platform operates.
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Tornado Cash: privacy in turmoil
Privacy solutions have been in the sights of regulators for several weeks now.
Indeed, at the beginning of August, the anonymization service on Ethereum, Tornado Cash, has been blacklisted by the US Treasury. In practice, the latter accuses Tornado Cash of having allowed the laundering of several billion dollars.
Following this announcement, many services and companies decided to censor transactions destined for the protocol. Moreover, some protocols have even gone until penalizing the wallets who have already used the protocol.
Faced with the rise of regulations, other protocols or cryptocurrencies ensuring privacy could find themselves in turmoil. At the same time, some centralized exchanges have already implemented mechanisms aimed at refusing tokens that have passed through a mixing service.
Fortunately, some players in the ecosystem have lent their support to the Tornado Cash protocol. In fact, the giant Coinbase will support several Tornado Cash users in their legal action.
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