Privacy cryptocurrencies such as Monero and Dash are no longer available on ShapeShift’s trading platform. Monero cryptocurrency is a privacy coin at the optimum level, while Dash contains privacy features only at an optional level. ShapeShift is a cryptocurrency trading platform where users can own their private keys.
ShapeShift’s Reason to Delist Monero and Dash Remains Unknown
ShapeShift was founded in Switzerland, a jurisdiction known for having stronger banking laws that concern the protection of its user’s financial privacy.
The company is quite well known to evade intrusions from government agencies. For instance, In 2015, the firm decided to pull out from New York State rather than comply with state regulations that mandate crypto firms recording user information. It even did the same when Washington state asked for a similar kind of regulation.
However, the crypto firm decided to soften up to regulators in 2018 by complying with “KYC” procedures.
ShapeShift’s founder and CEO Erik Voorhees said to Decrypt on delisting Monero:
“We chose to delist Monero months ago, but I cannot provide further comment on why at this time.”
It is still not clear whether delisting Monero from ShapeShift was a regulatory decision or a commercial one.
Privacy Coins Stirs Up Regulatory Concerns
Monero is the world’s largest privacy coin by market capitalization and is worth more than $2 billion. Transactions on Monero can be hidden through coin mixing processes, making it difficult for traceability. In contrast to this Bitcoin’s transactions are completely open, allowing anyone to view pseudonymous transactions.
Monero’s privacy features make it a cause of concern for the U.S. government, as the crypto coin is mostly preferred for hacking attacks. For these reasons, major U.S.-based crypto exchanges such as Gemini and Coinbase have not included Monero in their trading platform.
Coinbase’s CEO Brian Armstong had previously indicated that are regulatory pressures for crypto firms to delist privacy-based cryptocurrencies such as Monero.