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What Is the Primary Regulatory Concern Surrounding Privacy Coins?

The main regulatory concern is their potential use for illicit activities, such as money laundering and terrorist financing, due to their enhanced anonymity. Regulators fear that the untraceable nature of transactions makes it difficult to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) laws.

This has led some exchanges to delist privacy coins. Governments are exploring ways to regulate digital assets while preserving privacy.

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