The direct-swap digital asset exchange founded by Erik Voorhees in 2015, ShapeShift, has delisted several “privacy coins” from its platform. According to reports, regulatory risks associated with the use of Monero, DASH, and Zcash led to strict action. Many other exchanges, at least those with ties to the U.S., have similarly delisted those assets in recent times over regulatory concerns. It’s another sign that reality is finally sinking into the crypto community: governments will either find a way to trace previously “anonymous” digital transactions or find ways to restrict access to them.
Crypto exchanges continue to abandon privacy coins.
In recent years, DASH has sought to play down its status as a “privacy coin,” its leaders even admitting in interviews that the project doesn’t want to be labeled as such. These days the community prefers to tout its economic and development model as key drawcards. ShapeShift is not the first platform to delist privacy coins, several other exchanges have delisted these coins due to regulatory concerns. Privacy coins such as Monero and DASH are more difficult to trace.
Law enforcement agencies crack down on privacy coins.
When ShapeShift launched in 2015, a large part of its appeal revolved around the fact that it would swap digital assets directly to/from users’ wallets. There was no need to create an account or supply any form of identification. However, this approach has mellowed out of legal necessity over the years. ShapeShift began requiring users to provide KYC details to use the platform in 2018, and it has also restricted access to users in New York and Washington states rather than comply with their stricter local regulations. Law enforcement agencies in many countries have taken strict action against the use of privacy-centric coins.