The announcement of the delisting of Monero by Binance fell on February 20 and had the effect of a bomb. Behind this technical decision lies in reality a merciless standoff between the proponents of anonymous crypto and the States which want to ban them. Monero has become the symbol of this ideological battle with colossal stakes.
Monero, the crypto that is driving regulators crazy
With its impossible-to-trace transactions, Monero is the embodiment of regulators’ nightmare. Its confidentiality technology prevents financial flows from being followed, unlike Bitcoin for example. Enough to facilitate money laundering and the financing of illicit activities according to its detractors.
Some governments like the United States or the United Kingdom have therefore decided to crack down by forcing exchanges to delist anonymous cryptos. Binance ended up bowing under pressure by banning Monero on February 20.
But aficionados of private currencies cry out for censorship and attacks on individual freedoms. The battle has only begun.
Towards outright ban?
THE delisting of Monero by Binance is probably only a first step. Most experts believe that regulators will eventually completely ban anonymous cryptos, seen as a systemic threat.
It remains to be seen how they will go about it technically, since these decentralized currencies by nature escape any state control.
Some states could sanction the possession of Monero, others prevent its use on their territory. Radical measures which would cause an outcry among crypto enthusiasts, who are already on the rise.
If a total ban is imposed, it could precipitate the creation of an even more untraceable alternative Monero or encourage the emergence of parallel crypto networks beyond the reach of regulators. In short, the war is far from won for the States.
The outcome of this war remains uncertain
It is difficult to predict the outcome of this merciless standoff between regulators and anonymous crypto enthusiasts. States have powerful levers to constrain ecosystem players. But history has shown the difficulty of eradicating decentralized technologies.
Whatever the outcome of this battle, it will have had the merit of raising a substantive debate. Should we sacrifice anonymity on the altar of security and control? Or on the contrary defend it as an essential political right? Beyond Monero, the entire philosophy of cryptocurrencies is being questioned.
With its undetectable stealth technology, Monero is shaking up regulators who see it as a threat to be eradicated. The delisting by Binance appears to be only a first step towards an outright prohibition of anonymous crypto. But the followers of these rebel currencies will not surrender without a fight. The war has only just begun.
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