Europol: Monero transactions cannot be traced

The European law enforcement agency recently pointed out in a seminar that transactions of Monero (XMR) cryptocurrency on the internet remain untraceable, even with detailed research failing to uncover its transactions and token movements. This may lead various governments and international organizations to continue to approach privacy-focused anonymous currencies such as Monero and Zcash with caution.

Unable to Conduct Blockchain Analysis

Europol, the European Police Office, recently discussed detailed information about anonymous tokens in a webinar. Jerek Jakubcek, a strategic analyst at Europol, mentioned during the meeting:

Due to criminals using Monero in conjunction with the anonymous browser Tor, The Onion Router, we are unable to trace funds and IP addresses. This means we are at a loss.

The focus on Monero also indicates that European authorities are attempting to counter the adoption of anonymous cryptocurrencies. Additionally, over the past year, Europol has also attempted to crackdown on mainstream Bitcoin mixer Bestmixer. However, according to Europol, tracking Monero is more challenging compared to Bestmixer.

But is it really impossible to trace Monero transactions? A key member of the Monero community, Justin Ehrenhofer, explains:

It depends on what you are looking for. No technology is perfect, but Monero provides very strong privacy protection for all users.

Bitcoin, Ethereum, Provide Complete Transparency

Reports indicate that other public blockchains like Bitcoin and Ethereum offer a complex yet transparent trail for all on-chain transactions. However, once funds enter the Monero blockchain system, their trace ends.

The consequences of being unable to trace fund movements with Monero also pose challenges for exchanges, as many South Korean cryptocurrency exchanges are following FATF regulations by delisting Monero and other privacy coins from their trading lists.

Post-2020, ongoing revisions to regulations in various countries may make the adoption of anonymous coins even more difficult.

Further Reading

• UN Secretary-General: UN Must Embrace Blockchain Technology
• Study Shows: Up to 97% of Cryptocurrencies Have Almost No Liquidity

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