Among the cryptos in existence, privacy coins have become one of the biggest. The top five privacy tokens include Monero, Dash, Zcash, Verge, and Komodo. These coins are worth a combined $3.76 billion according to data given by CoinMarketCap. The $3.76 billion figure is higher than the $3.75 billion held by the top five stablecoins combined (Tether, TrueUSD, USD Coin, Paxos Standard, and DAI).
But despite how valuable privacy coins have become, there are fears that this asset class could be banned for good. There is evidence showing that world governments have implemented ways to restrict privacy coin usage. But tokens like Zcash have done well despite looming fears of a ban on privacy coins and restricted usage. How will this affect Zcash price prediction 2019?
Privacy Coins Have Always Been In The Eyes Of The Storm
In April 2018, the Financial Services Agency (FSA) in Japan, informally started pressuring exchanges in the country to delist Zcash, Monero, Dash and other privacy tokens. On June 18 of the same year, Japan officially banned privacy coins, with some of the biggest exchanges in the Asian nation removing the asset class following the directive of the authorities.
In May 2018, South Korean exchange Korbit, decided to delist privacy coins, after the government’s introduction of laws that required crypto traders to reveal their identify on exchanges in January of the same year.
One month after, the Secret Service called on the U.S. Congress to consider outlawing privacy coins.
The anti-privacy coins sentiment is also evident in the rest of the world. In September of last year, Changelly a Malta-based firm admitted that it was making profits of its customers who are trading Monero around the same period that the crypto’s reputation for ransomware involvement has been growing. Organizations like Europol and McAfee Labs have warned that criminals are likely to use Monero.
The Department of Homeland Security Has Tried to Trace Transactions Done With Privacy Coins
The rise in the notoriety of privacy coins is a key reason why the Department of Homeland Security in the U.S. announced in December of last year that it was researching ways to trace transactions with Monero and Zcash. In March of this year, Texas’ legislature was considering placing a ban on the anonymous usage of cryptos. The Finance Committee of France’s National Assembly has also called for a ban on privacy coins in recent months.
The Netherlands and India have also considered banning anonymous crypto transactions. Meanwhile, Taiwan has banned them already. Generally, this shows that the days of privacy tokens as a ‘mainstream’ form of crypto is under threat.
Banning Privacy Coins May Have Very Little Impact on the Tokens, it Will be a Difficult Endeavor
As discouraging as it may appear for privacy coins, proponents of Monero and Zcash are confident that bans won’t have much of an impact on the popularity and usage the mentioned tokens.
One of such privacy coins supporters is John McAfee who declared that it’s impossible to ban privacy tokens. The crypto enthusiast, took to Twitter back in January saying regulations and laws typically fail when they can’t be enforced. McAfee’s view is generally shared within the crypto community.
Zcash has been thriving since the start of the year despite all these challenges. It is presently valued at $87.22 according to Coin Market cap at press time. Its total market cap is $582,014,951 and the Zcash price prediction 2019 is quite bullish as well.