A 40% surge in Monero (XMR)? First of all, let’s get real, that’s not simply market volatility – that’s a blazing, draconian red light screeching for regulatory action. We can’t turn a blind eye to their implications. That “cautiously bullish” sentiment that some analysts are trying to sell you? It’s dangerously naive. Here's why.
Privacy Coins Fuel Illicit Activities
Monero’s main feature – its privacy – is exactly what turns it into hog heaven for all the criminal underbelly. Untraceable, unlinkable transactions are exciting in theory. In reality, in practice they create a criminal’s best friend, money launderer, tax evader, and individual financing our society’s worst actors’ perfect storm. The recent exploit where a huge portion of Bitcoin was exchanged for Monero, this isn’t just a bizarre market phenomenon. It’s a good example of a mini-case study of how these privacy coins are used to obfuscate the movement of illicit funds.
Think about it: that $330.7 million could represent the proceeds of drug trafficking, human exploitation, or even funding for terrorist activities. And due to Monero’s privacy features, following the money is exponentially more difficult, if not impossible. This isn’t an argument against innovation, it’s an argument for saving vulnerable populations from innovation’s very real dangers.
Unregulated Crypto Undermines Social Safety Nets
When individuals engage in tax evasion through these private and untraceable cryptocurrencies, like Monero, who bears the burden? We all do. Our schools and hospitals and infrastructure – all of it is hurting. Unregulated channels drain tax revenue. This theft truly robs the services that sustain our communities — particularly those most impacted and marginalized.
Libertarians should admit that their preferred argument that regulation limits individual freedom is pretty empty when you take the social cost into account. Where do the rights of these children go to education displace the freedom of their parents? What about the liberty of the sick and elderly to receive affordable, timely healthcare that doesn’t risk financial ruin? We have seen how the wealthy and powerful can undermine these freedoms. They hide their wealth in the shadows of the unregulated crypto markets.
The "Wild West" Breeds Inequality
We have to consider that the current crypto landscape is a “Wild West,” where all bets are off. And just like the original Wild West, it’s a giveaway for those that are already rich and plugged in. They have the bandwidth to pursue the complex and risky world of crypto. If they’re able to exploit loopholes and do so while effectively taking on the risk,
In the meantime, average Americans are left holding the bag when it comes to scams, market manipulation, and the overall volatile nature of these unregulated assets. This further deepens the inequities that persist and exposes the have-nots to an environment in which the rich indeed get richer and the poor get poorer. Gen Z, the most privatization-averse generation ever and the generation with the highest affinity for social justice, should be especially appalled by this. Is this the future we want? An America where financial inequality is exacerbated by the unchecked spread of technology?
Regulation Isn't Stifling, It's Stabilizing
The canard that new regulation will kill innovation is the old favorite, lame duck excuse. Regulation, when approached correctly, can promote long-term stability and sustainability. Look at traditional finance. We have strong regulations to protect investors, prevent fraud, and maintain orderly markets. These regulations aren’t ideal, but they create a baseline for innovation to happen responsibly and benefits to be shared sustainably.
KYC and AML requirements are primary defenses against facilitating illicit activity. Rather than viewing them as privacy-killing measures, they should be considered as the privacy-protecting safeguards that they are. It’s time to start treating financial crime as the freedom-eating crime that it is. Stricter enforcement of existing laws is not an infringement on anyone’s freedom. International cooperation is no bureaucratic burden; it’s vital to effectively pursue cross-border crypto crime.
Governments Must Step Up Now
The Monero surge is a wake-up call. Enough is enough — it’s time for governments to take a stand and act boldly. This is not a matter of deciding winners and losers – it’s about the government’s obligation to protect the public interest and keep the playing field fair.
We want to see clear and enforceable regulations that are up to task with the unique challenges that cryptocurrencies pose, privacy coins such as Monero in particular. We need real enforcement of illegal practices to stop the bad actors from undertaking illegal behavior. And just like any other illicit finance, we can’t fight cross-border crypto crime without international cooperation.
Don't let libertarian rhetoric fool you. Unregulated crypto markets are a clear and present danger to our society. So let’s hold big crypto to a higher standard! We need to be regulatory cheerleaders for all efforts that prevent harms to vulnerable populations and that build a fair and just financial system. The future of our communities – and our world – is counting on it.
Contact your elected officials and demand they support responsible crypto regulation. Share this article to help inform others and get America talking about this important issue. The time to act is not today, not when it’s almost too late.
