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- BTSE crypto exchange has launch Wrapped Monero Token (WXMR)
- The WXMR token is distributed in the Ethereum blockchain as ERC-20 tokens
- The nelly launched token has no anonymity like XMR tokens
- Anonymous tokens are facing regulatory challenges being delisted from exchanges
Wrapped tokens are now available on Monero (XMR), which claims to be a highly anonymous cryptocurrency. The tokens will be distributed in the Ethereum ecosystem, represented as ERC-20 standard tokens. It is known that the BTSE crypto exchange has launched the Wrapped Monero Token (WXMR). XMR tokens back up WXMR at a ratio of 1:1. The BTSE exchange will also be responsible for the Monero custody, which will be the collateral for issuing the wrapped tokens.
WXMR is having same transparency like other ERC-20 tokens
XMR uses a different blockchain that is unlike Ethereum’s chain. The holders of the XMR token were not available to use various DeFi services developed on Ethereum. On the other hand, this blockchain issue is also the reason that Bitcoin could not use DeFi. BTSE crypto exchange, offering the WXMR tokens, considered the fact and highlighted the Wrapped Monero Token’s transparency. According to BTSE, this wrapped version of XMR is having the same transparency as other ERC-20 tokens available on the blockchain of Ethereum.
The wrapped token has no anonymity issues like XMR
In the case of anonymous currencies, regulators face difficulties with tracing the remittance route of transactions, which helps bad actors settle illegal funds. Considering the issues, regulators are strengthening KYC and AMLglobally, which is creating trouble for such currencies. The value of WXMR is kept in the ratio of 1:1 with XMR tokens, still, it doesn’t have the characteristic of anonymity. It is known that the WXMR token is distributed on the blockchain of Ethereum, and is considered as an ERC-20 token, so the wrapped token has lost its anonymity.
Anonymous tokens were struggling to survive
This month, Bittrex, a US-based crypto exchange, announced plans to delist on all anonymous currencies like XMR, Zcash, and Dash. Not only several US-based crypto exchanges, but the delist event information has been received from South Korea also. The Financial Services Authority (FSC), proposed to ban the trade and holding of anonymous digital currencies. However, the policy of anonymous currencies is facing uncertainty, whether they will lose their identity or continue to protect the users’ privacy in the cryptosphere. To protect the anonymous currencies, it is needed to keep them in the light of their original purpose by protecting them from evil actors.
