{"id":113000,"date":"2020-11-16T17:00:00","date_gmt":"2020-11-16T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\/"},"modified":"2020-11-16T17:00:00","modified_gmt":"2020-11-16T14:00:00","slug":"dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\/","title":{"rendered":"# Dash claims \u2018inaccurate categorization\u2019 as ShapeShift delists privacy coins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33861061c7e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33861061c7e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\/#Regulatory_concerns_and_further_challenges\" >Regulatory concerns and further challenges\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\/#Widely_used_privacy_coins_predicted_to_remain_on_exchanges\" >Widely used privacy coins predicted to remain on exchanges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\/#Is_Dash_even_a_privacy_coin_and_does_this_matter\" >Is Dash even a privacy coin, and does this matter?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Dash claims \u2018inaccurate categorization\u2019 as ShapeShift delists privacy coins <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvMzdjZTY0YWMtNGExYy00NjMyLTg5MGQtMjA1NzJkMjUzYmI3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>It shouldn\u2019t come as a surprise that regulators are starting to pay close attention to cryptocurrencies this year. For instance, as the price of Bitcoin (BTC) continues to soar, it\u2019s predicted that regulators will start taking direct action \u2013 possibly even banning Bitcoin completely.\u00a0<\/p>\n<p>While the ban may sound extreme, regulators have recently honed in on the use of privacy coins like Monero (XMR), Zcash (ZEC) and\u00a0Dash. For example, in September this year, the United States Internal Revenue Service offered a bounty of up to $625,000 for intelligence firms that could break the untraceable privacy coin Monero. <\/p>\n<p>Moreover, on Oct. 8, William Barr, the attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> for the U.S., announced the release of a document entitled, \u201cCryptocurrency: An Enforcement Framework.\u201d Produced by the attorney general\u2019s Cyber-Digital Task Force, the publication discusses a framework to combat the \u201cemerging threats and enforcement challenges associated with the increasing prevalence and use of cryptocurrency.\u201d<\/p>\n<p>Although the document discusses cryptocurrencies in general, the report specifically addresses issues involving \u201canonymity enhanced cryptocurrencies,\u201d also known as AECs or privacy coins. The document notes examples of these privacy coins to include Monero, Zcash and Dash, stating that they undermine the Anti-Money Laundering measures:<\/p>\n<blockquote><p>\u201cThe acceptance of anonymity enhanced cryptocurrencies or \u2018AECs\u2019 \u2014 such as Monero, Dash, and Zcash \u2014 by MSBs and darknet marketplaces has increased the use of this type of virtual currency. As discussed above, because AECs use non-public or private blockchains, use of these cryptocurrencies may undermine the AML\/CFT controls used to detect suspicious activity by MSBs and other financial institutions.\u201d<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Regulatory_concerns_and_further_challenges\"><\/span>Regulatory concerns and further challenges\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Following the release of the cryptocurrency enforcement framework, ShapeShift, a Swiss cryptocurrency exchange platform that runs operations out of Denver, Colorado, has\u00a0delisted the very same three privacy coins mentioned.<\/p>\n<p>While ShapeShift declined to comment on the matter, Ryan Taylor, CEO of Dash Core Group, told Cointelegraph that the Dash network was labeled as a privacy coin in 2014. According to Taylor, the assumptions behind this label \u2014 or even more fundamentally what the label of privacy itself even means \u2013 has never been revisited. \u201cWe aim to correct this inaccurate categorization,\u201d he remarked. <\/p>\n<p>Taylor further explained that there has been no further developments made since the delisting of Dash on ShapeShift. However, he remains optimistic about partnering with the non-custodial exchange to get Dash relisted. He elaborated: <\/p>\n<blockquote><p>\u201cWe have had success in getting relisted on a number of exchanges in various jurisdictions. These exchanges include eToroX in the EU, Kraken and CoinSpot in Australia, and OKEx in Korea.\u201d<\/p><\/blockquote>\n<p>Yet due to the recent regulations around privacy coins, getting relisted may be more difficult than before. Miko Matsumura, a co-founder of Evercoin \u2014 a mobile wallet and exchange \u2014 told Cointelegraph that the recent U.S. cryptocurrency enforcement framework focuses so much on privacy coins due to the notion that they enable users to evade sanctions set by the U.S. Office of Foreign Assets Control. \u201cShapeShift was a bit slow to adopt Know Your Customer measures in the first place, so regulatory pressure must be high,\u201d he said. <\/p>\n<p>Aside from the challenges of getting relisted, other cryptocurrency exchanges may follow suit and start delisting privacy coins. Nathan Catania, a partner at XReg Consulting \u2014 a crypto-asset regulatory firm \u2014 told Cointelegraph that it\u2019s likely many crypto exchanges will start delisting privacy coins. \u201cThis could be due to outright bans, or greater regulatory pressures for virtual asset service providers to treat privacy coins as higher risk for Anti-Money Laundering purposes,\u201d he said. <\/p>\n<p>Asia\u2019s two largest cryptocurrency exchange markets \u2014\u00a0Japan and South Korea \u2014 are already taking action to delist privacy coins. Catania further remarked that even if privacy coins are not banned, a lot more work and scrutiny would be required moving forward for crypto exchanges to interact with clients who wish to use privacy coins. Yet Catania believes that for some exchanges, the risks and costs would not outweigh the benefits of supporting privacy coins, so more exchanges are likely to delist privacy coins in the future. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Widely_used_privacy_coins_predicted_to_remain_on_exchanges\"><\/span>Widely used privacy coins predicted to remain on exchanges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>However, some experts beg to differ. Bill Barhydt, the CEO of Abra \u2014 a peer-to-peer payments platform that supports over 70 cryptocurrencies including Dash \u2014 told Cointelegraph that Abra works closely with third-party custody partners. He mentioned that, to his knowledge, these partners have no plans to delist any cryptocurrencies that are widely used in the marketplace today. Dash would fall into this category, as its current market cap\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/dash\">rank<\/a>\u00a0is number 31 on CoinGecko, with 9.8 Million coins in circulation. <\/p>\n<p>In addition, many compliant crypto exchanges in the United States continue to support privacy coins. Justin Ehrenhofer, a compliance analyst at DV Chain \u2014 an affiliate of Chicago-based proprietary trading firm DV Trading \u2014 told Cointelegprah that exchanges, such as Kraken, which has a Special Purpose Depository Institution banking charter in the state of Wyoming, support many common privacy coins. He further noted that Gemini supports shielded Zcash deposits and withdrawals, pointing out that the\u00a0risk-based <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach Gemini takes for Zcash should apply to shielded deposits and withdrawals of other assets like Monero, too. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Dash_even_a_privacy_coin_and_does_this_matter\"><\/span>Is Dash even a privacy coin, and does this matter?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Speculations aside, Dash Core\u2019s Taylor ultimately believes that Dash is no more of a privacy coin than Bitcoin:\u00a0\u201cMost people would say that Bitcoin is clearly not a privacy coin, so it\u2019s informative to evaluate where Dash would fall on this privacy spectrum compared to Bitcoin.\u201d He went on to add: \u201cBitcoin is absolutely higher risk than Dash from a regulatory perspective for many reasons, both technical and in terms of its real-world use.\u201d<\/p>\n<p>This notion was also specifically stated in an AML regulation <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.perkinscoie.com\/images\/content\/2\/3\/v7\/237411\/Perkins-Coie-LLP-White-Paper-AML-Regulation-of-Privacy-enablin.pdf\">report<\/a>\u00a0released by international law firm Perkins Coie. Taylor further expressed that the label of a privacy coin is meaningless, as different technologies provide differing degrees of privacy to different participants.\u00a0According to Taylor, what is relevant for this specific case is how exchanges and other money services businesses can address the AML compliance risks for transactions for the cryptocurrencies they support.<\/p>\n<p>It\u2019s also important to point out that Bitcoin continues to be the most widely used cryptocurrency on <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.crowdfundinsider.com\/2020\/05\/161146-bitcoin-btc-remains-a-widely-used-cryptocurrency-for-dark-web-transactions-a-new-report-claims\/\">darknet markets<\/a>. John Jefferies, the chief financial analyst at CipherTrace \u2014 a blockchain intelligence firm \u2014 further told Cointelegraph that the line between privacy coins and Bitcoin is not binary since privacy enhancements like CoinJoin and layer-two\u00a0networks can also enhance the privacy of Bitcoin transactions.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/dash-claims-inaccurate-categorization-as-shapeshift-delists-privacy-coins\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Dash claims \u2018inaccurate categorization\u2019 as ShapeShift delists privacy coins &#8221; It shouldn\u2019t come as a surprise that regulators are starting to pay close attention to cryptocurrencies this year. For instance, as the price of Bitcoin (BTC) continues to soar, it\u2019s predicted that regulators will start taking direct action \u2013 possibly even banning Bitcoin completely.\u00a0&#8230;<\/p>\n","protected":false},"author":1,"featured_media":113001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/37ce64ac-4a1c-4632-890d-20572d253bb7.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[15047,74859,74862,74858,74863,76326,74963,70934,67874],"class_list":["post-113000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-privacy","tag-aml","tag-bitcoin","tag-bitcoin-regulation","tag-cryptocurrencies","tag-dash","tag-monero","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/113000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=113000"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/113000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/113001"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=113000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=113000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=113000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}