Monero under pressure: The dark side of the anonymous cryptocurrency!

Monero under pressure: The dark side of the anonymous cryptocurrency!

In recent years, Monero, a cryptocurrency founded 11 years ago by computer scientists under pseudonyms on a Bitcoin forum, has become the preferred currency for illegal payments on the dark web. This cryptocurrency guarantees complete anonymity, which makes it particularly attractive to criminals. According to a report by SRF Monero was most recently mentioned in an extortion case in Geneva, where the perpetrators demanded payment in this cryptocurrency.

Around the world, Monero is used by both criminal organizations and individuals, including the Islamic State, which accepts the currency for donations. In Switzerland, the Federal Office of Police has classified Monero's anonymity as a threat because suspicious transactions are difficult to identify and monitor. So far, attempts by law enforcement agencies to decrypt Monero's anonymity features have been unsuccessful.

Regulatory challenges and the decline in usage

However, using Monero is not without its challenges. On February 20, 2025, the crypto exchange Binance decided to remove Monero from its trading platform. The reason for the delisting is regulatory concerns and the lack of transparency of this currency. As a result, many darknet marketplaces are returning to Bitcoin, which technically offers more liquidity and accessibility despite its lower anonymity due to the publicly visible blockchain. Eric Jardine of Chainalysis noted an increase in Bitcoin transactions on darknet platforms following the delisting of Monero.

However, returning to Bitcoin means more risk for buyers as transactions are easier to track and identifying sellers is riskier, especially if they use centralized exchanges. This leads law enforcement to benefit from the traceability of Bitcoin payments and prioritize their investigations into larger darknet marketplaces linked to fentanyl trafficking.

Future developments in the crypto world

The decline of Monero and the return to Bitcoin could be seen as a step backwards for anonymity on the dark web. Future alternatives to Monero such as Zcash, Firo or Haven currently have either low liquidity or other restrictions, further complicating the situation for users. The Monero community, on the other hand, continues to work on the development of the currency and meets annually to discuss the latest developments at the Monerokon conference.

In Switzerland, research on Monero remains active at several universities to better understand anonymity systems and promote data-driven policy decisions. While the European Parliament plans to stop allowing anonymous cryptocurrency accounts from July 2027, the cryptocurrency regulatory landscape represents a constant challenge for all players.

The situation surrounding Monero and online payments on the dark web remains tense and continues to be closely monitored by both authorities and users. With a currency that relies on anonymity, it remains to be seen how the general conditions will develop in the future. The battle between maintaining privacy and regulatory efforts will continue to shape the cryptocurrency discussion.