Monero has been downtrending since August. However, over the past 24 hours, privacy coins have shown signs of recovering.

Monero’s (XMR) price soared from $169.39 up to $206.51 in the early hours of Wednesday morning. That is an impressive 22% jump in just six hours.

This represents the highest point XMR has reached in January. Monero now stands at 52% higher than its previous low of $135.33, which coincides with the outbreak of war in Ukraine.

The surge came just before news broke about U.S. President Joe Biden’s executive order on cryptocurrency regulation.

This executive order, the first of its kind, addresses the absence of any framework for the U.S. development of cryptocurrency and seeks promote the country’s competitiveness. This executive order also instructs federal agencies that they collaborate in the development of digital currency regulations.

Coinbase (NASDAQ):, the largest U.S. cryptocurrency exchange blocked yesterday 25,000 Russian-originating crypto wallet addresses. These accounts are suspected to be involved in illegal activities in evading economic sanctions against Russia.

Use of Sanctions to Avoid the Risk

As a result of Russia’s invasion in Ukraine, Western countries such as the United States and EU have continued to impose economic sanctions on Russia. International businesses are seemingly fleeing the country as the ruble’s course dwindles to historic lows, with Russia being driven into isolation not seen since the Soviet era.

The number of Russian cryptocurrency users has increased dramatically since the start of military operations. Concerns therefore arose that the country’s officials, politicians and oligarchs would try to circumvent the sanctions by using digital currencies.

In order to avoid any suspicious transfers by individuals and war-related entities, financial institutions have increased their diligence.

It’s more difficult to track privacy coins

Therefore, it is likely that sudden Monero demand (XMR), and Zcash(ZEC) are not accidental. Private digital currencies, such as XMR and Zcash (ZEC), are not known for their traceability. Privacy coins have been criticized.

These privacy coins are designed to hide transactions through the use of XMR and other crypto payments. They are almost impossible to connect to any particular identity or past transactions.

This is in line with the fact that Monero, (XMR), has been reported to be one of most commonly used cryptocurrencies for illegal transactions.

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