Crypto exchange OKEx will delist five privacy coins as of the 10th of October. The decision has been taken as these coins “violate” the FATF’s “travel rule”
September 16, 2019, | AtoZ Markets – Regulatory pressure on cryptocurrency exchanges to stop providing users with access to so-called privacy coins is growing.
OKEx to delist privacy coins in Korea due to increasing regulation
The South Korean branch of a global cryptocurrency exchange OKEx has announced it is planning to delist all five privacy coins which include monero (XMR), dash (DASH), zcash (ZEC), horizen (ZEN) and super bitcoin (SBTC).
According to the statement published on the Korean website of the crypto exchange, the privacy coins violate the laws of regulatory agencies and policies related to preventing money laundering and terrorism financing.
“[Anonymity tokens] violate the laws of regulatory agencies and major institutions. The Financial Action Task Force (FATF) has recommended abiding by the Travel Rule, and we are taking steps to follow it.” said a spokesperson of OKEx Korea.
The FATF is an international organization that was established back in 1989 as the initiative of G7 in attempt to develop and create policies and guidelines to combat global money laundering. Back in June 2019, the watchdog issued its final crypto guidelines in which it retained the “travel rule”.
This Travel Rule makes it compulsory for exchanges to obtain clients’ data and transfer it with other platforms to have information about the sender and recipient. The information needed to be collected includes the originator’s name, account number, and location information, among others.
However, these five privacy-oriented coins don’t allow exchanges to identify the sender and recipient of a transaction by design and are, therefore, not compliant.
As a result, OKEx South Korea will stop providing support for the coins as of the 10th of October. Nevertheless, customers have until December 10 to withdraw any of the five delisted coins from the platform.
An OKEx representative has revealed that the decision applies only for its Korea unit as these coins will remain listed on the global OKEx platform.
More crypto exchanges could follow
Regulatory agencies around the world and crypto exchanges are imposing new regulations that users would have to follow if they want to continue operating in the market.
In August, U.K.-based crypto exchange CEX.io also announced that it is delisting privacy coins zcash and dash taking into account “global regulatory and compliance developments.” Coinbase U.K. also recently discontinued support for zcash due to U.K.’s new banking partner ClearBank.
Notably, another South Korean cryptocurrency exchange Upbit has also announced the delisting of privacy coins on September 9. Probably, more crypto platforms that deal with privacy crypto will follow the suit.
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