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Crypto Exchanges Face New Privacy Token Proposals in Upcoming US Regulatory Framework
Policy • Compliance • Exchanges

Crypto Exchanges Face New Privacy Token Proposals in Upcoming US Regulatory Framework

Published · ~4–5 min read
US privacy token policy proposals and exchange compliance
New proposals could redefine exchange compliance for privacy tokens under US oversight.

U.S. regulators are drafting new proposals for privacy tokens, targeting exchanges that list assets such as Monero (XMR) and Zcash (ZEC). These plans aim to enhance transparency, compliance, and anti-money laundering controls while preserving the lawful use of privacy technology in the crypto ecosystem.

Key Focus Areas in the Proposals

  • Exchange obligations: Implement enhanced KYC, risk scoring, and blockchain analytics integration.
  • Wallet monitoring: Apply stricter rules for self-custody withdrawals involving privacy coins or mixers.
  • Transparency measures: Require clearer user notifications on traceability and privacy limitations.
  • Interoperability compliance: Align with FATF and EU AMLA frameworks to maintain global standards.
“This is not about banning privacy tokens,” said one policy advisor. “It’s about ensuring that exchanges can prove due diligence and responsible risk management.”

Implications for the Market

While stricter oversight could lead some exchanges to reconsider listings, others are preparing enhanced reporting systems to comply. Analysts expect that these proposals will encourage new privacy-preserving yet compliant technologies—striking a balance between innovation and regulation.

Bottom line: the U.S. government is moving toward risk-based oversight, where exchanges that prove transparency and analytics capability will retain access to privacy assets.

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