Illicit transactions in cryptocurrency are really common these days and it brings out the question of proper security measures. Well, the founder of Wasabi Wallet, has actually found a solution for that.
According to the latest news on crypto today, CoinJoin, which is a part of the Wasabi Wallet Company will be a special BTC or Bitcoin Mixing Tool that will help in blocking or flagging the illicit transactions that take place.
Going by the words of the company’s founder, it is a pretty major setback for the entire fungibility of Bitcoin. However, there are other developers who have actually advocated the proper use of such privacy coordinators in the world of cryptocurrency.
CoinJoin to Block Illegal Transactions of Cryptocurrency
A very popular and well-known BTC or Bitcoin Mixing tool is known as CoinJoin, will be blocking different transactions that are flagged or associated as illegal. This official announcement was made by the Twitter account of Wasabi Wallet.
The services of CoinJoin will promptly start to block certain transaction outputs or UTXOs that are unspent. These accounts will not be allowed to register with CoinJoin and hence the security measures will definitely prevail. A zkSNACKs coordinator is a virtual machine used to mix the origin of the transitions.
The privacy-focused tools for mixing cryptocurrency are used primarily to obscure the actual origin of different transactions. Hence, these are often considered to be the means for washing illicit funds and making them clean without any hindrance. However, since the blockchain tends to have a pretty public ledger, there are different forensic tools to stop money laundering from taking place in the crypto world.
This particular announcement that was made from Wasabi Wallet actually ended up trigging a lot of privacy advocates. These people actually accused Wasabi Wallet of actually being compliant with the orders of the government. However, according to a developer of the firm, Rafe (Twitter name), they have actually made any compromises in the values that they have.
Still, they will be adhering to the benchmarks for the security of the wallet. The developer also made a point to say that the UTXOs being blocked will just be limited to the zkSNACKs coordinator. So, the people who are using other coordinators will still have their sense of privacy intact.
The founder of Wasabi Wallet, Adam Fiscor, actually acknowledged the fact that the blacklisting of the accounts in the privacy wallet can actually be a threat to the fungibility of Bitcoin. Most of the centralized entities as well as the governments have actually perpetuated a proper narrative around the utilization of cryptocurrency for certain illicit activities. The role of mixing tools and privacy wallets might just be aiding that.
However, according to data analytics and research about cryptocurrency, the use of crypto in illicit activities actually comprises a very small part of the entire pool of transactions. It has also been noticed by analysts that the crimes associated with illegal transactions of crypto have actually been on a constant decline. This is due to the fact that there are more powerful and efficient analytical tools that can help in ensuring the security of cryptocurrency in the best way.
Going by the data from Chainlysis, which is a major cryptocurrency analysis firm, the number of transactions that are actually illegal is decreasing by the number. In fact, according to the latest news on crypto today, the volume of illicit transactions has gone down by about 0,15% in 2021.
The recent arresting of the married couple who were trying to launder money from the multi-dollar hack of Bitfinex is a fine example of how security measures are tightened to stop money laundering in the world of crypto.
Also Read: Money Laundering With Crypto Rises in Charts Yet Maintains A Low Record : Chainalysis.
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