Dubai bans coins that interfere with transaction tracking, such as Monero and Zcash. Crypto-Upbotes expert review

Dubai (one of the UAE emirates) has banned the issuance and transactions of anonymous cryptocurrencies. The restriction was imposed by a new set of rules on virtual assets and related activities published by the emirate’s regulator, The Dubai Virtual Assets Regulatory Authority (VARA).

Authorities in various countries have a negative attitude towards anonymous cryptocurrencies and take various measures to restrict their use. Because with the emergence of such coins, the number of fraudulent attacks and financial fraud with cryptocurrencies has increased significantly. Attackers often use these tokens to hide the movement of stolen funds.

A set of rules adopted by the Dubai regulator bans cryptocurrencies that “enhance anonymity,” such as Monero, Dash and Zcash. According to the document, this is a type of virtual asset that prevents transactions from being tracked or records of ownership through public blockchains, and for which the VASP (cryptoservice provider) has no technology or mechanisms to track them or determine ownership of them.

The issuance of anonymity-enhancing cryptocurrencies and all activities related to them are prohibited in the emirate, the new law says.

The new rules also establish mandatory licensing for cryptocurrency companies operating in this region. They detail the procedure for issuing, storing and exchanging cryptocurrencies, cybersecurity standards, and requirements for various activities related to digital assets.

Our experts note that after the introduction of compulsory licensing of cryptocurrency-related activities in Dubai. The regulator has already received hundreds of new license applications. To cope with the flood of applications, VARA plans to quadruple its staff over the next few months.

Our experts told how anonymous cryptocurrencies are affected by stricter regulation. And their delisting from CEX exchanges, as well as prospects for such projects.

Main goal of anonymous cryptocurrencies is to ensure confidentiality of financial transactions. However, with such coins, scams and financial manipulation of cryptocurrencies have increased significantly. Cybercriminals often use these tokens to conceal movements of stolen funds.

In this regard, governments of different countries have a negative attitude to anonymous cryptocurrencies. And they take various measures to limit their use. Some cryptoplatforms are also refusing to work with confidential tokens. Thus, one of the recent negative events was the delisting of Monero (XMR) and another six tokens from this category on major cryptocurrency exchange Huobi.

Trend on delisting of anonymous cryptocurrencies increases

Currently, we are seeing a steady trend towards increased regulation of cryptocurrency. And also drive for large CEX exchanges to get as many licenses as possible in different jurisdictions.

And understanding of anonymous coins by financial regulatory authorities of leading economies is very negative. Anonymous coins are seen as a threat, a tool for scammers. And as a consequence, we see a “world war” against anonymous cryptocurrencies, our experts note.

Demand for anonymous cryptocurrencies is growing

After starting sanctions war between Russia and the West, interest in confidential cryptocurrency increased rapidly. This was due to their ability to circumvent restrictive regulations.

Our expert pointed out that in Q2, anonymous coins showed outperformance compared to the market as a whole.
Whether delisting from exchanges will affect prices of these coins, now it is difficult to say. Such actions by regulators could have collapsed prices in 2017. But now the market has become less susceptible to such news for many reasons.

Given the fact that these cryptocurrencies remain in high demand. Including due to sanctions that have reached cryptocurrency market as well. And wait for a fall in prices for XMR and other anonymous coins from these events should not be our experts’ opinion.

Anonymous cryptocurrencies may lose their capitalization, but not their real value.

Huobi stopped trading 7 tokens. And asked users to cancel all open orders for these cryptocurrencies, Crypto-Upvotes expert review

Cryptocurrency exchange Huobi Global will delist seven anonymous cryptocurrencies. The list includes Monero (XMR), Dash (DASH), Decred (DCR), Firo (FIRO), Verge (XVG), ZCash (ZEC) and Horizen (ZEN). Trading of these tokens was terminated on September 6 on this platform. Which was announced on this platform’s blog on September 12. Huobi team asks users to cancel all open orders for these cryptocurrencies in a timely manner.

Anonymous cryptocurrencies – these are cryptocurrencies that hide transactions in blockchain. In order to preserve anonymity of transaction participants and traces of their actions. Withdrawal function in these tokens continues to function for now.

According to Coingecko, centralized exchange Huobi Global, founded in 2013, ranks 8th by trading volume ($816 million). Cryptocurrency exchange features about 630 assets and more than 1,000 trading pairs.

Also in early August, a largest cryptocurrency Monero (XMR) mining pool named MineXMR announced its closure. Platform team asked miners to reconfigure their equipment to other pools by August 12.

Effects of rejection of anonymous cryptocurrencies

Unfortunately, more and more CEX exchanges are delisting anonymous cryptocurrencies. This is due to the fact that many CEX exchanges must follow the rules of international regulatory organizations. And the internal rules of the country in which they are located.

Most likely, we are facing the start of a global confrontation between cryptocurrency exchanges and anonymous cryptocurrencies. Because tensions have long been brewing between blockchain ideologues and traditional traders. Real cryptocurrency followers follow original ideals of technology and privacy. And traditional traders have come into cryptocurrency world only out of profits.

Perhaps we will soon see what you might call a “hardfork” of blockchain industry. When some currencies will simply become digital money, reminiscent of the usual fiat money of any country.
And part of the investors will use only real cryptocurrencies. Which maintain privacy and security.

Perhaps in the near future we will see new DEX platforms. Which will not follow general rules. And will stick to real cryptocurrency goals. Because cryptocurrencies were not created just to replace ordinary fiat money. Their purpose was security, anonymity, and decentralization. So that no country in world could control these funds. Who will win – regular traders or real cryptocurrency users. We will know in the next few years.

Crypto platform MineXMR asked Monero miners to switch to other platforms by August 12

Monero (XMR) cryptocurrency mining pool named MineXMR announced its closure. Platform team asked miners to reconfigure their equipment to other pools by August 12.

MineXMR mining pool is largest pool in Monero network. As of August 1, about 9.5 thousand miners remain on the platform. And the pool’s Hashrate is 1.08 Gh/s . At the same time the total Hashrate of XMR network is about 2.6 Gh/s.

Platform team does not name any official reason for closing platform. Members of Monero community expressed dissatisfaction with MineXMR pool back in February. And called to boycott this platform. Users’ concerns were raised by fact that pool took control of almost 48% of Hashrate Network. This worried anonymous cryptocurrency community. Because of close possibility of 51% attack on XMR ecosystem on the side of pool management. This is an attack in which owner of more than half of network processing power can manipulate blockchain data.

Monero (XMR) cryptocurrency was created in 2014. Coin protocol includes mechanisms that make blockchain completely anonymous. Currently, Monero is a largest confidential coin with a market capitalization of $2.8 billion.

Our Crypto-upvotes experts noticed that due to high anonymity of this coin. So many financial regulators of different countries impose bans on its circulation. Therefore, our team can fully recommend this project for long-term investment.