Privacy-focused cryptocurrencies have moved higher as the broader crypto market trended sideways. Monero (XMR) rose about 9.8% to $641.77, after briefly surpassing $646 earlier in the day, and the week-to-date gain is roughly 45%. Zcash (ZEC) slipped about 3.5% to $398.08, while Railgun (RAIL) jumped around 23.6% to $2.70. The trio exemplifies a broader rally in privacy coins, often tagged for their ability to obscure transaction details such as sender, recipient, and amount.
Analysts note these assets’ distinctive features, with Monero emphasizing fungibility, Zcash employing zero-knowledge protections, and Railgun operating on Ethereum to complicate on-chain tracing in DeFi. The price activity comes despite tighter regulatory scrutiny, with privacy coins historically labeled as dark coins in some jurisdictions and subject to removals in others.
Dubai’s regulatory move on December 12, when the Dubai Financial Services Authority restricted privacy coins within the DIFC due to AML and sanctions risks, underscores ongoing regulatory tension. Nevertheless, prices for privacy coins have continued to rise, a development some see as highlighting scarcity and resilience in censorship-resistant assets. CoinDesk summarized the mood by noting that investors are maintaining a bid for assets with censorship resistance even amid stricter rules.
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