Bitcoin and other digital assets do not provide anonymity, as all transactions both the account balances of different wallets can be viewed publicly. In contrast, the so-called ‘privacy coins’, which offer a particularly high degree of anonymity, are a thorn in the side of some countries, as they can be used for criminal activities.
The Finance Committee of the French National Assembly has stated in a recent report that it believes it is appropriate to ban all cryptocurrencies that offer the user an increased level of encryption and anonymity. The factual unavailability of some digital assets such as Monero, Dash and
However, the report describes the blockchain technology as a great opportunity and that the committee will understand step by step the processes and applications and benefits for the economy of these new innovations. Nonetheless, the opinion on anonymous cryptocurrencies is clear and clearly worded, as Éric Woerth, President of the Committee, puts it in the introduction (freely translated):
It would also have been appropriate to propose a ban on the distribution and trade of [established cryptocurrencies] in order to ensure complete anonymity by preventing from the outset any identification procedure any possibility of identifying the owners. So far, regulation has not gone that far.
Woerth does not differentiate between coins that offer a high degree of anonymity by default, such as Monero, or that have optional data protection features and that the user can decide for himself whether he wants to use them or not. The stock market has Coincheck last year Monero, Dash, ZCash and Augur from the drawn transport because due to increased safety standards, the KYC method has to be checked and observed harder. In the case of Coincheck, a previous hack was the reason for the tightening of measures in Japan. The document cites traditional causes such as tax evasion, fraud, terrorist financing and environmental pollution as possible reasons for a general ban on privacy coins. Nevertheless, the report clarifies that cash continues to be the main source of funding for criminal activity.
The report makes it clear that there must be a clear distinction between the different assets so that the corresponding regulations are accurate and do not harm cryptocurrencies in general (freely translated):
The distinction between the various uses of [cryptocurrencies] needs to be continued in order to provide finer and more precise regulatory protection for the general interest as well as the private interests of the entrepreneurs of that domain.
Woerth also advocates the creation of international regulatory standards that should be implemented across borders.
Categories: Crypto Currency