The high levels of anonymity of Monero and Bitcoin generate concern in the German government
In a recent report issued by the Federal Ministry of Finance of Germany, the minister described Monero (XMR) as a risky cryptocurrency, since digital privacy currencies are more vulnerable to be used in illegal transactions and operations than Bitcoin (BTC). This information was detailed in the report.
In this sense, the government agency conducted a full investigation into the risks of using this type of cryptocurrency to conduct financial operations. In the same way, the government measured the main problems of cryptocurrencies in terms of security, transparency, and functionality.
The conclusion determined by the investigation, in the first national risk report 2018-2019, showed that cryptocurrencies such as Monero (XMR) offer high levels of identity protection. In fact, Monero is able to conduct transactions anonymously, much more than the Bitcoin platform (BTC).
Hence, according to the German Ministry of Finance, these digital assets result to be potentially “dangerous” for the economic security of individuals and financial organizations. In addition, it added that Monero could well be an asset widely used for money laundering, or even as a method of financing terrorism.
The report explains the increasing use of these cryptocurrencies, which could be a type of illicit use that could well be investigated, although with great difficulty.
“Due to the increasing popularity that Monero has acquired in dark networks, it can be expected that this cryptocurrency, specifically, will gain more practical relevance in the future in the area of security”, the document says.
In addition, this report detailed that this cryptocurrency contains sophisticated features that make it really difficult to track the money used in transactions. It is impossible to verify the origin of the funds. The German authorities qualify as “ideal for criminal acts” the fact that Monero safeguards the identity of those who conduct the transaction.
The report also notes that within the darknet itself, (or dark network, where most clandestine and illegal operations are conducted), Bitcoin (BTC) represents a high level of risk to be used in fraudulent and criminal financial operations. Other research shows that anonymity also resulted to be a point against the asset.
At the conclusion, the German agency announced that the legislation in the country will soon be modified, in order to go in line with the guidelines of the European Union, which goes against fraudulent acts such as money laundering and terrorist financing. The authorities also consider to determining a regulatory framework that monitors the actions of companies engaged in cryptocurrencies such as virtual exchange houses, digital wallets, custody services, among others.
The report ended by giving a series of recommendations that could be followed to raise security levels in the face of the use of these technologies the German territory. It was also explained that there was a lack of reliable data to ensure how much cryptocurrencies were used in Germany and the relationship between Bitcoin and terrorism.
Therefore, it was determined that these assets are increasingly used to raise funds for terrorist purposes.
By María Rodríguez