Perkins Coie, a top-notch legal counsulting firm, has released a new whitepaper in collaboration with Tari, Monero's (XMR) side project. According to former Monero (XMR) lead developer Riccardo Spagni, lawyers and engineers spent 18 months creating a new legal basis for the existence of privacy coins.
Endless battle between privacy and regulations
The new whitepaper, "Anti-Money Laundering Regulation of Privacy-Enabling Cryptocurrencies," is focused on the balance between money laundering prevention and protecting users' privacy. The authors emphasize that privacy is what cryptocurrencies were invented for.
The long-awaited Perkins Coie whitepaper is now available!— Monero || #xmr (@monero) September 15, 2020
"Anti-Money Laundering Regulation of Privacy-Enabling Cryptocurrencies"
This 40 page report is the most comprehensive to-date on compliance and Monero and will greatly assist adoption of XMR!https://t.co/RyvhGNlB4e
Given this fact, existing anti-money laundering directives provide a sufficient legal framework for crypto regulation, including that of so-called privacy coins.
By contrast, the restriction of privacy token usage may dramatically damage crypto-focused businesses. A low level of privacy allows malefactors of all sorts to intervene in business operations:
Without maintaining confidentiality, commercial transactions would be visible for competitors and nefarious actors to analyze, predict, front-run, and exploit.
Lawyers emphasized that only privacy coins ensure a sufficient level of decentralization, low latency and negligible transaction costs. With their implementation, privacy becomes a special type of "added benefit" previously inaccessible to the majority of market participants.
Quantum leap for Monero (XMR) adoption
Furthermore, blockchain-based privacy-focused systems pose ofa significantly lower threat of abuse by criminals compared to cash fiat money or credit cards. That can be explained by the integrity and immutability of records related to cryptocurrency transactions.
Finally, the lawyers stressed that all of the disadvantages of actual anti-money laundering practices should not be treated as a catalyst of new restrictions.
As covered by CryptoComes previously, both Monero and Tari Labs valued the release of the new "regulatory" whitepaper. It may pave the way to a new legal status for the most popular privacy coin.
Now that this unique document is available, the Monero (XMR) team is certain of its unprecedented effect on Monero's progress:
This 40 page report is the most comprehensive to-date on compliance and Monero and will greatly assist adoption of XMR!