In as much as the cryptocurrencies seek to solve many problems, they also threaten to facilitate crime. For this reason, many governments are not at ease in the presence of the digital currencies. This is due to the privacy that surrounds the transactions involving cryptocurrencies. However, the community is coming up with ways for combating dirty money in the cryptocurrency ecosystem.
Peace of mind
Longhash is a blockchain accelerator and cryptoanalyst which is the entity behind the effort. Specifically, the company launched a Bitcoin tracker. According to a post on its website, the company says the intention is to bring peace to market players. Particularly, the move aims to assuage regulatory fears. Long since digital coins came on the scene, governments suspect they may provide a conduit for money laundering.
Digital currencies and associated transactions happen within tight privacy environments. In fact, users can make anonymous transactions. Obviously, this is a big problem to the government. Normally, authorities want information on all transactions to be able to track movement of money and assets. This way, it is easy to catch law breakers and tax defaulters.
Tracking path in combating dirty money
However, the report clarifies that the company is not after revealing private information about users. Neither is the firm after revealing the identities of the Bitcoin users. On the contrary, the firm is only after tracking the ?path? of the digital coins around the web.
According to the website, cryptocurrencies can seem murky. As a result it renders strategies for combating dirty money ineffective. In fact, the firm acknowledges that essential tools of transparency must be available for proper surveillance to happen. Also, such tools will drive up the wave of future adoption of the cryptocurrencies.
However, some crypto enthusiasts disagree. Particularly, the proponents contend that privacy is a central principle of the blockchain technology. Therefore, designing means of tracking the path of cryptocurrencies from one wallet to the next is intrusive. It will be similar to taking away an important pillar of the novel technology, they argue.
In their defense, Longhash argue that combating dirty money from within will facilitate a faster adoption of the technology. Subsequently, the technology will be able to flourish at its full potential.