Monero (XMR), Zcash (ZEC) and Dash (DASH): South Korea bans anonymous cryptocurrencies

Attackers could have destroyed coins in the network via a Monero security hole.

According to a recent report by the Asia Times, it will soon be goodbye to the three anonymous cryptocurrencies Monero (XMR), Zcash (ZEC) and Dash (DASH). The South Korean government wants to ban privacy coins in the first quarter of next year.

Monero, ZCash and Dash are affected

On November 18, the Asia Times reported that, from March 21, 2021, South Korea would officially ban cryptocurrencies that have a strong focus on user anonymity.

The ban is intended to hit Monero (XMR), Zcash (ZEC) and Bitcoin Up. The initiative takes place within the framework of some measures that are directed against money laundering in the Asian country.

From the point in time mentioned above, all crypto exchanges based in South Korea should no longer be allowed to offer privacy coins such as Monero or Dash.

The South Korean Financial Supervisory Authority (FSC) cites the use of anonymous cryptocurrencies in connection with ransomware attacks or money laundering attempts as reasons. The supervisory authority explicitly emphasizes that the security measures built into the anonymous crypto currencies make it almost impossible for the authorities to find out the true identity of the people behind them.

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No danger to cryptocurrencies like Bitcoin (BTC)

On the other hand, there is no risk of cryptocurrencies such as Bitcoin falling under this ban. It says:

The majority of mainstream cryptocurrencies such as Bitcoin are not completely anonymous. At least the address and the transaction volume can be viewed. The authorities can track transactions and often transfer the owner of the wallet when the respective cryptocurrency lands on the respective exchange. This gives you access to the stored e-mail address.

This is probably another low blow for anonymous cryptocurrencies. More and more authorities and countries are deciding to ban privacy coins. The danger of privacy coins was also emphasized in the European Union.

While cryptocurrencies like Bitcoin are increasingly being integrated into the classic financial world, a separation of privacy-focused cryptocurrencies seems to be an inevitable trend.