El European Cybercrime Centre (EC3), body attached to Europol, made public statements about several cryptocurrencies, including Monero (XMR), Zcash (ZEC) and Dash (DASH) and the approach you have on Privacy. While the blockchain of Bitcoin (BTC) operates as a public ledger and decentralized, allowing all transactions to be traced, these digital assets are specifically designed to protect all data from being made public, making it extremely difficult to track the movement of funds.
PREPARE YOUR WALLETAlert authorities
Digital assets such as Monero, Zcash and Dash have caught the attention of governments, international organizations around the world and authorities in charge of tracing money for prevent money laundering, terrorist financing and drug trafficking and resources for human trafficking due to the very nature of these cryptocurrencies, susceptible to illegal uses.
Hence, a detailed technical analysis is required. Jerek Jakubcek, strategic analyst at EC3, explained how These privacy-focused cryptocurrencies can conceal criminal actsHe did this during a webinar organized by the Blockchain Alliance, noting that Europol continues to closely monitor its developments.
Jakubcek highlighted the technical and innovative challenges associated with tracking and analyzing transactions made with these tokensBased on previous investigations, the analyst explained that the suspects use a combination of these virtual currencies to hide their IP addresses and erase any trace of transaction histories.
According to the Europol expert: «on the Bitcoin Blockchain, transactions are visible, which allowed us to make significant progress in our research. However, On the Monero, Zcash and Dash network our work stopped. This is a typical example of several cases where suspects chose to transfer funds from public networks such as Bitcoin or Ethereum towards Monero, Zcash and Dash.”
La European Union Agency for Police Cooperation, better known as Europol, is not new to the area of research and monitoring of cryptocurrenciesRecently, he organized and hosted a conference for experts on the subject with the goal of strengthening collaboration between law enforcement, the private sector, and user communities.
About the use of digital assets for misuseJakubcek highlights the privacy capabilities of the aforementioned cryptocurrencies and thus highlights the challenges that privacy-focused tokens could face in the future.
On the other hand, some members and enthusiasts of the crypto community They believe that the development of this digital asset market could be at risk due to new regulations promoted by international organizations.
Such is the case of authorities such as South Korean, Japanese, Slovenian, Swedish, Israeli, Colombian, Indian, British, Canadian and others who have stipulated high taxes above 30% to transactions with digital assets. They also pointed out the cases of Algeria, Bangladesh, Bolivia, China, Egypt and Indonesia, among others, in which the Operations with digital assets are prohibited completely.
TRADE WITH STABLECOINSWhy are they difficult to track?
The cryptocurrencies that are under the scrutiny of the authorities have been designed to improve privacy in transactions, making it difficult to track themThis feature alone is not harmful, but can be used for criminal purposes by global organizations drug trafficking, dogs of war, human trafficking or money laundering to “cover up” all traces of their activities.
The characteristic of Monero privacy This is because it uses technologies such as hidden addresses, ring signatures to encrypt the data of the person performing the transaction, and Ring Confidential Transactions, which hides the amount of each transaction. This is why this asset is one of the most private options available. This token was launched in 2014 as a fork of the Bytecoin network.
In the case of Zcash uses zk-SNARKs a protocol known as succinct, non-interactive zero-knowledge argument to maintain transaction confidentiality. This technology allows for hiding both the identities of the participants (sender and receiver) of the transactions as the volume in money thereof.
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The equilibrium
El total anonymity in economic transactions, whether with cryptocurrencies or in traditional finance, represents a danger not only for society, but also for the user or the person carrying out the transaction.
Not knowing the minimum data of both parties facilitates illicit activities such as money laundering, terrorist financing, human, drug or arms trafficking, and tax evasionWithout clear records, it is more difficult for authorities to track, prevent, and identify those responsible for these crimes.
INVITE AND WINIt's not just about being enthusiast of decentralized and democratic finance, the same users and small investors can be victims of schemes fraudulent or scams and there are thousands of stories about these cases. This is why A minimum of information is required for the security of society in general, as a lack of transparency can make it difficult to implement regulations that protect users and ensure the ethical and secure use of all crypto assets.
