ZEC's recent downturn has implications for privacy coins, especially in the EU SME market, as regulatory pressures increase.
What regulatory hurdles do privacy coins face now?
The upcoming EU AMLR will ban privacy coins from major exchanges by January 1, 2027, already causing delistings and banks blocking accounts. SMEs now have a diminishing legal space for using privacy coins in their transactions.
How does market sentiment play into this?
ZEC's price drop, nearly 25% in a week, indicates heightened fear in the market. This volatility can deter SMEs from using privacy coins, as it increases financial risk and reduces confidence in their stability as a payment option. Past regulatory actions suggest major delistings could lead to panic selling and loss of institutional capital.
Are privacy coins still relevant?
Privacy coins may still offer value in niche sectors needing confidentiality or operating in less regulated regions. However, their use is likely to be limited. The community support and innovation in privacy technology show that while they will continue to evolve, mainstream usage may diminish.
