Recent claims by the Finnish National Investigation Agency (KRP) regarding the tracking of Monero transactions have caused an uproar in the crypto world. Insiders suggest that Monero's privacy features remain intact.
Blockchain expert and former MAGIC Monero Fund board member Csilla Brimer told Decrypt that the traceability is likely due to user error in operational security, rather than a breach of Monero itself. .
“Frequent exchanges between Bitcoin and Monero can lead to inadvertent information leakage,” Breimer explained. This blunder could give regulators a false sense of confidence in whether they can track Monero. Brymer emphasized that “Monero protects transactions well, but it cannot compensate for the lack of security.”
Monero's market position remains strong despite controversy
Despite its controversy, Monero maintains its position as the leading privacy coin with a market capitalization of $2.8 billion. This resilience is evident as XMR is trading 1.1% higher at $158.22. The Finnish investigation focused on the 2018 data breach and subsequent extortion of psychotherapy provider Vastaamo, with investigators analyzing movements in Monero and Bitcoin wallets.
This scrutiny has led to heightened regulatory attention, with major UK exchanges such as Bittrex, BitBay, Huobi and even Kraken delisting Monero, citing anti-money laundering regulations. Binance also points out Monero's high volatility and risks, putting it at risk of delisting.
As Monero navigates these challenges, its strong market performance and recent Finnish study highlight the complexity of privacy in the digital currency landscape. This situation highlights the ongoing debate between maintaining user privacy and complying with regulatory standards.
Also read: Binance, Monero, Zcash and 8 more assets added to monitoring tags
