The exchange ShapeShift removed the ability to trade monero (XMR) and dash (DASH) on its platform. Both cryptocurrencies have characteristics that can increase the privacy of their users when making transactions.
The company did not provide any explanation for the reasons. that led to the withdrawal of these assets. “We chose to remove Monero months ago, but I cannot offer further comment on why at this time,” was the only statement on the subject by ShapeShift CEO Erik Voorhees.
Even so, it is known that there is pressure from state regulatory bodies so that exchanges do not offer cryptocurrencies that allow the anonymity of their transactions. In July of this year, Coinbase CEO Brian Armstrong had exposed these pressures.
Much of this is behind-the-scenes conversations where [los reguladores] They say “We don’t think you should do this.” And then we have the conversation: “Well, but are they telling us that they don’t like it or are they telling us that they are going to sue us if we do it?”
Brian Armstrong, CEO de Coinbase.
Regulatory pressure appears to be global. As recently reported by CriptoNoticias, South Korea to Ban Monero, Dash and ZCash for considering them “dark cryptocurrencies”.
Also, the United States tax collecting entity, against the privacy of Monero, seeks to adopt tools that facilitate the tracking of its transactions. For this, it signed contracts with the analysis companies Chainalysis and Integra FEC.
Why are Monero and Dash in the crosshairs of regulators?
Monero is the privacy-focused cryptocurrency with the higher market capitalization (USD 2,076 million at the time of writing this article). Through a process known as ring signatures, only one of the signatures seen on the blockchain is real, but there is no way to pinpoint which one it is or where it came from. So when making a transaction, anonymity is maintained except for the parties involved.
Since its launch in 2014, the product of a fork of Bytecoin, Monero had a increase in your transactions sustained over time. Last November 6 was the day with the most transactions in the history of this blockchain. 21,287 XMR movements were registered, representing an increase of 227% since January of this year.
Dash, although initially thought of and promoted as a privacy-focused coin, is currently provides this feature as optional. The process that allows anonymity is known as PrivateSend. Basically, when making a transaction, the wallet sends a merge request to the master nodes. There, only the quantity and denominations (0.01 dash; 0.1 dash; 1 dash; or 10 dash) to be mixed are specified. No other details are revealed.
Both cryptocurrencies are compatible with the values that ShapeShift showed in its beginnings. For example, in 2015 it stopped offering services in the state of New York not to provide data on its users and 2 years later it did the same in Washington for similar reasons. Still, it couldn’t help but give in to pressure from regulators and in 2018 decided to adopt KYC (“know your customer”) policies.
ShapeShift, which allows instant conversion between dozens of cryptocurrencies, is built into some wallets, such as Coinomi. Users of these applications can exchange their assets without leaving the wallet thanks to this integration.
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ShapeShift removed Monero and Dash from its exchange