FATF Privacy Coins: What They Are and Why They're Under Scrutiny

When you hear FATF privacy coins, cryptocurrencies designed to hide transaction details from public blockchains. Also known as privacy-focused coins, they're built to obscure sender, receiver, and amount—making them powerful tools for financial privacy, but also targets for regulators. The FATF, the Financial Action Task Force, an intergovernmental body that sets global anti-money laundering standards says these coins make it too easy for criminals to move money without detection. That’s why they’ve pushed countries to ban or restrict exchanges listing them.

Not all privacy coins are the same. Some, like Monero, a coin that uses ring signatures and stealth addresses to fully hide transaction data, are designed from the ground up to be untraceable. Others, like Zcash, which offers optional privacy features through zero-knowledge proofs, let users choose when to hide details. Then there are coins that claim privacy but don’t deliver—often just marketing hype. The FATF doesn’t care about the technical differences. They see any coin that can’t be tracked as a risk. That’s why major exchanges like Binance and Coinbase have delisted Monero and Zcash in many regions.

It’s not just about crime. Governments worry that privacy coins weaken their ability to enforce sanctions, track tax evasion, or stop terrorist financing. Countries like South Korea, Japan, and Australia have already forced exchanges to cut them off. Even the Pakistan Virtual Assets Regulatory Authority, a new crypto watchdog aligning with FATF rules, is tightening rules to match global pressure. The result? Fewer places to trade these coins, less liquidity, and growing uncertainty for users who value anonymity.

But here’s the real question: Is privacy itself the problem? If you’re not breaking any laws, why should your financial activity be public? The FATF says transparency protects the system. Critics say it erodes basic rights. Either way, the rules are changing fast. What you’ll find in this collection are real-world reviews, deep dives into how these coins actually work, and clear breakdowns of the regulatory crackdowns hitting users today. No fluff. Just facts about what’s banned, what’s still available, and what you need to know to stay safe in 2025.