Dubai bans privacy coin Monero
As part of a new crypto regulation, Dubai bans the issuance of privacy coins.
As part of a new crypto regulation, Dubai bans the issuance of privacy coins. This includes Monero (XMR), for example.
In Dubai, all activities related to cryptocurrencies like Monero (XMR) that contribute to increasing anonymity are prohibited. This is stated in a recently published legal document.
According to the document, the regulation sets licensing and authorization requirements for companies and issuers of virtual assets. The new rules define anonymous cryptocurrencies as "a type of virtual asset that prevents tracing transactions." Unlike, for instance, Bitcoin, XMR is indeed considered largely anonymous.
Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs, told Coindesk: "Any masking of money flows poses a challenge to tracing illicit activity. It’s therefore not surprising that regulators push back hard on this kind of asset class and mechanism."
The law aims to "maximise safety for local consumers" and help "Dubai establish itself as a global hub for blockchain technology," the law reads.
Meanwhile, industry interest in the desert state is high. While Binance obtained a service provider license last year, Ripple operates from Dubai with a regional headquarters.
Monero, the privacy coin, has a controversial reputation: darknet currency, ransomware payment method, and drug money.
