Privacy-Focused Cryptocurrencies

 

Amidst a general market downturn, privacy-focused cryptocurrencies have recently shown significant growth, with analysts attributing the surge to increased investor attention to anonymous transactions and a desire for financial privacy

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Recent Performance Highlights (as of November 4-5, 2025)

Cryptocurrency

            24-hour Change          Weekly Change          Monthly Change         Current Price (approx.)

Zcash (ZEC)   up 2.41% to 21%         up 40% to 63%            up 172% to 191%        ~$412 - $469 USD

Dash (DASH)  up 10% to 66%            up 68% to 150%          up 190% to 385%        ~$103 - $138 USD

Monero (XMR)            up 3.5% to 8.3%          up ~1%            up ~18%          ~$336 - $357 USD

Note: Percentage changes and prices can vary slightly depending on the specific time and exchange data referenced in the search results.

Drivers of Investor Interest

 

    Regulatory Scrutiny: Increased scrutiny of major chains like Bitcoin and expanding Know Your Customer (KYC) requirements on exchanges have driven a flight to assets offering transactional anonymity.

    Opt-in Privacy Model: Zcash's and Dash's optional privacy features, which allow a balance between privacy and regulatory compliance, have made them more palatable to some investors and institutions compared to Monero's mandatory privacy model. This has led to Zcash recently surpassing Monero in market capitalization for the first time in seven years.

    Technical Improvements: The development of user-friendly wallets like Zashi, which makes shielded (private) transactions simpler, and cross-chain integrations are making privacy features more accessible to a broader user base.

    Whale Activity: For Dash specifically, a high concentration of holdings among top addresses suggests significant buying pressure from large investors, or "whales".

    Market Rotation: As the broader crypto market, including Bitcoin and Ethereum, has faced corrections and volatility, some traders have rotated capital into the privacy coin sector, viewing them as a safe haven or an opportunity for high returns.

 

 Monero is legal in the US

 

It is legal to own and use Monero in the US, but its use is complicated by regulatory scrutiny and the fact that many exchanges have delisted it due to privacy concerns. While there is no outright ban, financial institutions and exchanges are cautious, and users must comply with tax laws, which can be challenging given the anonymity of the coin.

Legality and regulatory status

 

    Not outright illegal:

    Monero is not banned in the United States.

 

Regulatory concerns:

Due to its privacy features, Monero faces regulatory scrutiny from government bodies like the IRS and FinCEN.

Delisted by exchanges:

Many cryptocurrency exchanges have removed Monero from their platforms because of the regulatory uncertainty, making it harder to buy and sell on centralized services.

Tax obligations:

Users are still required to report their Monero gains and losses for tax purposes, which can be difficult to do accurately with an untraceable currency.

 

Practical implications for users

 

    Difficulty trading:

    It can be difficult to exchange Monero for U.S. dollars on major exchanges, which may require using peer-to-peer platforms or other alternative methods.

 

Compliance:

Be prepared for potential challenges in tracking transactions for tax purposes. Failure to report income can lead to penalties.

Varying international laws:

While legal in the US, other countries have banned or restricted Monero, which can affect cross-border transactions or use.