Privacy digital currencies such as Monero (XMR) and Zcash (ZEC) have a promising future when it comes to decentralization. Nevertheless, they challenged the conventions and the recent worldwide digital currency regulations which demand the increased transparency of digital currency transactions.
In the latest scenario in this regard, a digital currency trading platform – Changelly, allegedly blocked some of its users using Monero [XMR] until the completion of KYC verification. Most of the people that stand against the concept of privacy-centric digital currencies argue that Monero [XMR] and other privacy digital currencies can easily be used as money laundering solutions, and also for carrying out illegal activities and purchasing illicit things.
Monero (XMR) Price Today – XMR / USD
The nature of these privacy digital currencies has forced digital currency trading platforms and regulators to handle the possibility of unlawful usage of Monero [XMR] and other digital currencies that are like it. This is exactly what Changelly said they had done just a couple of days back when they froze the accounts of some of their uses using Monero [XMR] until they complete KYC verification.
Monero [XMR] Is Still Under Severe Scrutiny
After some of the affected users complained that Changelly has blocked their Monero [XMR] funds, the community of Monero [XMR] showed how disappointed they are regarding those events. Nevertheless, the trading platform said that they have the right to withhold suspicious transactions.
A spokesman of the trading platform said, “The risk management system of the platform does not mark all transactions out of the blue. Monero is a digital currency that hides recipients and sender, therefore making transactions untraceable. This is the reason why large amounts of other currencies are properly checked before converted to Monero [XMR].”
The spokesman said to eliminate the suspicions, a KYC verification is required. In fact, the terms and conditions of Changelly state that “when users refuse to provide the required data, the platform can’t return coins as they would not like to operate and transfer digital currencies that might probably be raised by fraud or stolen.”