Privacy cryptocurrencies provide users never before seen protection from prying eyes. In a world with a lot of data and privacy concerns, moves like these might be progressive. However, concerns remain that they may support illegal activities.
Kraken, one of the biggest cryptocurrency exchanges today, has disclosed through an email that they will be removing privacy coin Monero (XMR) from the list of assets that users will be able to trade on the platform. The move, they say, complies with policies and regulations in the UK. The exchange will stop any transactions related to the token, including running trades, and will allow users only to transfer Monero tokens back to their private wallets come the 26th of November.
The technology used in privacy tokens prevents one from seeing their public addresses and amounts being transferred. It makes it unlikely with the technology available today for analytics companies to identify parties involved in a transaction. The creation of coins like this has led to a lot of contentions.
Proponents think that these privacy coins better protect the user’s privacy than conventional cryptocurrencies. They believe the ledger cryptocurrencies that can be viewed online may be cross-referenced with KYC information available on exchanges to discover the user. On the other hand, of course, detractors believe these features make it appealing to criminal elements.
The increasing pressure for cryptocurrency regulations might hit these privacy tokens more than others. For this reason, Coinbase, which is the biggest exchange in the U.S., declined to add XMR to the list of coins tradable on the exchange. In January of this year also, we saw Bittrex remove XMR and other popular privacy coins from the platform. It has not helped that within this week; it has provided aid for cybercriminals.
Cybercriminals Hack Alibaba Servers To Mine Monero
Company servers being hijacked to mine for cryptocurrencies is not a new development. Security experts Trend Micro have, however, noticed a new trend this week. Alibaba’s cloud is now becoming subject to more attacks by these cybercriminals to mine Monero due to the privacy protection it provides.
Alibaba’s Elastic Computing Service (ECS) holds a unique appeal to cybercriminals because it adjusts its computing resources based on the number of users on the network, according to Trend Micro. The firm confirmed that increased usage meant additional charges for customers. There are concerns that these privacy coins will continue to encourage these kinds of actions to give added security to such criminals.
Other Criminal Activities Tied To Monero
A U.S. couple alleged to have attempted selling nuclear secrets were said to have requested payment in Monero instead of Bitcoin. They were worried that with Bitcoin, they could be found out. Unfortunately for them, they were in negotiations with undercover law enforcement.
It has also been a favorite of White supremacists in the U.S. iconic leaders of the “Unite the Right” rally in 2017 which led to fatalities, have been on the run, and have used the token to raise funds online. Even though investigators are aware of these, they can’t track them or their transactions. The former maintainer of the blockchain Riccardo Spagni is also facing court proceedings in South Africa for fraud.
The pressure from regulators aside, the privacy coin ecosystem continues to grow. It now has a market valuation of around $15 billion. XMR is trading around the $4,350 price point and is up about approximately 4% today.
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