Privacy Coins Are Getting Delisted

Leading cryptocurrency exchanges in Asia have been delisting privacy coins like Monero, ZCash, and Dash and this is becoming a trend in Asia. In the wake of intra-governmental Financial Action Task Force (FATF)’s new global standards, Korean exchanges have been on a delisting spree. The progressive abandonment of such coins in “crypto-friendly” Asia is a warning call to all privacy advocates: privacy and regulations cannot coexist.

The Delisting Trend

Before the issuance of FATF, a Japanese exchange started the trend by swinging the axe. Coincheck delisted four major privacy coins in 2018 thanks to pressure from the Japanese Financial Services Agency (FSA). An outright ban on Japanese exchanges dealing with privacy coins followed soon after. Further, very few privacy coins are set to be listed on Binance’s upcoming U.S.-compliant exchange, making it the concerted effort of regulators worldwide to put the brakes on privacy.

On September 10, 2019, OKEx announced that XMR, DASH, ZEC, ZEN, and SBTC will be delisted for Korean customers as of October 10, 2019, 17:00 KST. Users will be able to make withdrawals of the tokens until December 10, 2019, 17:00 KST. The announcement mentioned that the exchange decided to take measures to end the trading support of privacy coins.

Upbit has issued an “investment warning” status informing traders that security tokens are under review and may be removed if they fail to meet FATF recommendations.

About FATF

The Paris-based Financial Action Task Force (FATF) is a coalition of countries from the United States to China, will tell countries to tighten oversight of cryptocurrency exchanges to help stop digital coins being used to launder cash. Earlier this year, Europol broke up a Spanish drugs cartel that laundered cash using two crypto ATMs, machines that issue cryptocurrencies for cash. These events have led to speculation around privacy coins. The new FATF rules will provide an opportunity for various professional consulting firms such as PWC, Norton Rose Fulbright, and Deloitte. They will serve as a bridge between FATF guidelines and VASPs. Crypto exchanges will also incur costs on building new infrastructure to comply with rules.

Compliance, delistings, and compromise are not exactly thrilling prospects for the privacy coins who got into the crypto game to take back financial sovereignty. While privacy coins are getting delisted, the whole class is far from dead. Privacy coins that comply with the FATF regulations will continue the legacy of the class.





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