Several developers of privacy coins under the Anonymity Enhanced Cryptocurrencies (AECs) believe that the tools required to regulate digital assets under this category have been created.
Market activities in recent weeks show enormous growth in the value of privacy-focused cryptocurrencies like Monero, Dash, Zcash, and Haven Protocol.
Largely attributed to the increased political tensions in Ukraine and Canada, these assets have enjoyed enormous patronage, as many investors now believe that this kind of crypto investment can provide much-needed financial anonymity.
Privacy coins’ performance in March
As March comes to an end, data shows that some of the best-performing digital assets of the month are privacy coins.
Monero, the most popular asset in this class, saw its price rise from around $134 early this month to $210 —a growth of over 40% within the last 30 days.
Others, like ZCash, grew from less than $100 to $197 within the same time frame, while also touching as high as $207. Dash rose to $128, while the relatively new Haven Protocol surged to $4.20
These coins appear to be the biggest winners, given the geopolitical crisis, and the newly signed executive order by U.S. President Joe Biden. While the focus of the community has been on assets like Bitcoin and Ethereum, privacy coins like Monero have steadily seen an influx of investors.
Regulatory concerns surround privacy coins
The increased popularity of privacy coins is leading to an improvement in their demand, hence why regulators are looking for ways to bypass the security and anonymity feature. As a regulatory function, South Korea banned AECs in 2021.
Similarly, the U.S. Financial Crimes Enforcement Network (FinCEN) reported that AECs make use of different technologies that prevent security officers from being able to recognize transaction activity on the blockchain. Even exchange platforms like OKEx, have kept delisting privacy coins from their platform.
Regardless of the numerous threats of regulation and even delisting of assets by some exchanges, investors and developers remain hopeful concerning AECs. They believe the regulations would only bring more importance and popularity for the coins.
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