The coders have control over the regulations

  • Developers are creating untraceable cryptocurrencies
  • Privacy-focused digital currencies are less focused on the space
  • The primary matter is about the consent of the users to share their transaction data
  • Monero can make regulators build new methods to trace criminal conduct

In a recent research study report from the Copenhagen Business School, it is observed that developers are creating a cryptocurrency that can be protected from regulator’s surveillance, and in the future also no regulators could trace such crypto tokens. According to Rob Gleasure, associate professor from the Department of Digitalization at Copenhagen Business School, the regulators need to realize that the coders can control the rules.

What was the main focus of crypto research?

The main focus of the research was on the privacy attitude of the space. It focused the users, developers, cryptographic researchers, business architects, and regulators on privacy attitude. According to Dr. Renwick, as they can get good access to users and developers in the community, it makes the research different.

Privacy-Preserving digital currencies are less focused

According to Dr. Robin Renwick, a research analyst at Trilateral Research, every individual always focuses on less controversial crypto ecosystems like Ethereum, Bitcoin, Hyperledger, etc., but focuses on the potentially disruptive cryptocurrencies. Monero is seen as the poster child for its privacy preserved community when it comes to untraceable crypto tokens. However, according to the United States Department of Justice, coins like Monero are described as a cypherpunk and anti-establishment, as the use of such currencies is possible for several crime conducts.

According to Gleasure, if decentralized privacy-focused currencies like Monero get famous in the future, then such coins can be exchanged without converting to different currencies.

Regulators need to find another way to track criminal activities

According to Gleasure, the whole crime detection system is based upon tracking transactions, but in Monero, the system cannot work as it was not fair to start with. Monero believes that the data trails left from digital transactions are not worth it, as if the firm gives away all our data into the digital finance system, no one will ever provide their consent to do so. However, because of the decentralized nature of such digital currencies, it would be hard to enforce the ban of such privacy-focused coins across all the jurisdictions, even if the regulators try. Now the regulators should start planning other ways to trace criminal activities, as there is a possibility of exchanges being unable to keep identity linked transaction records.

Regulators need to build new methods for reimbursement

Let us consider the protocols of Monero, which allows its users to remain with rules and principles and keeps control over the information that only gets shared if required for investigation. Indeed, using such a system, every transaction doesn’t need to be monitored. According to Gleasure, if these crypto communities own financial systems that are impossible to regulate, then the regulators will accept the issue and create new methods to trace criminal conduct.