Privacy coins such as Monero (XMR) have a promising future under the perspective of decentralization. However, they challenged the conventions and the recent global cryptocurrency regulations which demand more transparency from crypto transactions. In the most recent case in this regard, Changelly cryptocurrency exchange reportedly blocked some users’ Monero (XMR) funds until KYC verifications are completed.
The majority of those who oppose to the concept of privacy coins argue that Monero (XMR) and other cryptos of its kind can be easily used as money laundering solutions, as well as for buying illegal things or conducting other illicit activities. The nature of these privacy coins forced regulators and cryptocurrency exchange platforms to tackle the possibility of unlawful usage of Monero (XMR) and other cryptos like it.
That’s precisely what Changelly reported they’d done just a few days ago when they decided to freeze some users’ Monero (XMR) funds until the KYC verifications are completed.
The drama continues on Changelly as Monero (XMR) is still under extra scrutiny
After some of the affected users complained about having their Monero (XMR) funds blocked by Changelly, the Monero (XMR) community showed disappointment regarding those events. However, Changelly reported, via a spokesman, that the cryptocurrency exchange has the right to withhold suspicious transactions.
“To all Monero (XMR) community, our risk management system doesn’t mark all transactions out of the blue. Monero (XMR) is the crypto that hides a sender and recipient thus making transactions untraceable. This is a reason why big amounts of other currency got to be checked before converted to XMR,” said the spokesman.
A KYC verification is, therefore, required to eliminate the suspicions the Changelly spokesman mentioned. In fact, the cryptocurrency exchange’s T&C states that “when a customer refuses to provide the required data, we cannot simply return coins as we wouldn’t like to operate and transfer coins that might be potentially stolen or raised by fraud.”
This case is not the first one when big players in the cryptocurrency industry take measures against privacy coins, and, most likely, the drama surrounding Monero (XMR) will continue.