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'Reports of the Death of Privacy Coins Have Been Greatly Exaggerated' 101
Source: iStock/Andrew Haysom

Speculation of the death of privacy coins has been greatly exaggerated as regulators are not advocating an outright ban and these coins are already preparing to comply with the infamous Travel rule, according to cryptocurrency intelligence and blockchain security company CipherTrace.

“Cryptocurrency users ultimately have to cash out to fiat currency somewhere to spend their money in the real world. That involves linking to blockchain addresses to user accounts at off ramps such as exchanges, P2P marketplaces, bitcoin ATMs and other MSBs [money service businesses]. This has led several regulated exchanges to begin delisting privacy coins out of fear they may violate [anti-money laundering] regulations,” the company said in its Q3 2019 Cryptocurrency Anti-Money Laundering Report. (The company also claims that 76% of dark market transactions and ransomware use Bitcoin (BTC) for payments.)

As reported on Tuesday, Poland-headquartered, Central and Eastern Europe-focused cryptocurrency exchange BitBay has become another platform that will delist privacy-focused Monero (XMR). Meanwhile, in 10 October, OKEx announced it reversed its decision to delist Zcash (ZEC) and Dash (DASH).

In either case, CipherTrace stressed that the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Financial Action Task Force (FATF) are not advocating an outright ban on privacy coins as long as controls are in place to mitigate the risks associated with their anonymity enhanced features.

“This position is reflected in FinCEN’s USD 110 million enforcement action against BTC-e [now defunct crypto exchange] in 2017. The regulatory agency did not specifically take action against BTC-e for its use of DASH per se. Rather, they took issue with the lack of appropriate money laundering controls in place while offering privacy enhanced featured,” CipherTrace explained.

'Reports of the Death of Privacy Coins Have Been Greatly Exaggerated' 102
Source: CipherTrace

Also, when it comes to the Travel rule, things might be better than one might think. As a reminder, the rule necessitates that VASPs share customer info with each other, so that one exchange can confirm, for example, that a customer on another platform it’s sending 10 bitcoins to has a verified identity.

“Many of the top coin developers have already released statements on how they could comply,” the security company said, referring to announcement by Monero, Zcash, and Dash.

Also, according to an April 2019 Zcash Regulatory and Compliance Brief, “The fact that a VASP (virtual asset service provider0 supports Zcash or that a customer intends to trade Zcash does not impact the VASP’s ability to carry out [customer due diligence’ checks… Zcash was designed to be compliant with the Travel Rule.”

Moreover, VASPs just launched the OpenVASP initiative that aims to solve one of the biggest regulatory challenges, known as the “travel rule.”

Privacy coins

'Reports of the Death of Privacy Coins Have Been Greatly Exaggerated' 103


Learn more: Are Privacy Coins Being Driven to Extinction? Good Luck, Governments!

Jarosław Adamowski , 2019-11-28 15:54:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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