Privacy coins aren’t a major money laundering risk a new white paper argues.
Privacy coins including Monero, Dash, Grin, and Zcash pose less of a risk of money laundering than other cryptocurrencies according to a report by a global law firm.
According to a new white paper released by US international law firm Perkins Coie, anti-money laundering (AML) measures taken by regulatory bodies worldwide have been sufficient to address any issues caused by privacy coins, and additional oversight may not be necessary.
The paper cited coins fitting within the current financial regulatory structure used by the US Financial Crimes Enforcement Network (FinCEN), the New York Department of Financial Services (NYDFS), Japan’s Financial Services Agency (FSA), the UK’s Financial Conduct Authority (FCA), and the Financial Action Task Force (FATF).
“Privacy coins pose lower inherent AML risk than other cryptocurrencies when considering evidence of illicit use in practice," the white paper stated.
“Not only do privacy coins provide public benefits that substantially outweigh their risks, existing AML regulations properly and sufficiently cover those risks, providing a proven framework for combating money laundering and related crime.”
The report stated that while most transactions made with cryptocurrencies are legitimate, privacy coins can provide benefits that “substantially outweigh” the risks of using them.