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September 26, 2020
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Crypts: What is the balance between privacy and regulations?

In the digital age, there has been a massive democratization of information. However, are privacy ideals being diluted in an environment where scalability and efficiency seem to be the most sought after aspects?

When Bitcoin was launched and introduced to the world, it also represented a form of currency that would truly belong to the individual with an additional sense of ownership, resistance to censorship and privacy. Now, can we find a balance for crypts when it comes to aligning native privacy with regulations?

In the last episode of the known podcast ‘The Wolf of All Streets’, BullyESQ, Co-founder of Alpha Marketplace and Arrow Privacy Coin, spoke about the relationship between cryptocurrencies and individual privacy and why privacy is a fundamental requirement that must be respected in any system. He pointed out that, when it comes to arguing about privacy measures, public perception continues to stigmatize such efforts.

“There seems to be a stigma nowadays where many people believe that if you are looking for privacy, it is because you are that crazy drug dealer willing to break the law.”

Crypts x Regulations: A constant observation

Although cryptocurrencies have been linked to fraudulent activity in the past, the increase in regulations pertaining to KYC and AML laws is intended to take crypto transactions out of the legal underworld and move them to regulated zones like any other type of finance.

However, BullyESQ said that since governments have interests in the global banking system and are making efforts to stop illicit transactions and terrorist financing, cryptocurrencies today have become a highly monitored space.

It is very obvious that they are watching the crypts very closely because they do not want them to be used as a way to get around the marks that exist today. This in international terrorism, money laundering, etc. These are understandable goals for governments to maintain, but at the same time, I don’t know if complete transparency is needed in the financial system.

Publication points to most used currencies on the Dark Web

A recent report from the RAND corporation pointed out that, although Bitcoin is a cryptocurrency that can be easily tracked, its popularity has continued to grow – at least for uses in the call darknet.

Most used currencies on the Dark Web. Source: RAND 2020.

The publication mentions,

“Zcash only has a lesser presence on the dark web, indicating that it is seen as a less attractive option for users of the dark web and also that it is used less frequently compared to other cryptocurrencies, especially Bitcoin and Monero.”

For Bitcoin, without the implementation of shield mechanisms, transactions are extremely traceable, which may not always be an ideal situation, according to BullyESQ. Interestingly, in the early days of Bitcoin, many assumed that the currency had complete secrecy, something that is far from true.

If you do not use any type of shield mechanism, to change the wallets, or something like that, the person who receives Bitcoin in the final stage of the transaction will be able to see how much you paid, when you were paid, where you were paid, who paid it and then potentially be able to track it.

Source: AmbCrypto

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