We now have more signs that privacy-focused cryptocurrencies such as Monero and Zcash may be ousted from cryptocurrency exchanges in the light of new regulatory requirements.
The South Korean arm of popular cryptocurrency exchange, OKEx announced last week that it would by October 10 delist from its platform Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC).
OKEx cited that the reason for delisting the cryptocurrencies is because they are non-compliant with newly introduced rules by the Financial Action Task Force (FATF) for crypto platforms.
The new regulations, as we explained mandates cryptocurrency exchanges to share customer data if transactions exceed $1000, something that is practically impossible with privacy coins.
The privacy-focused nature of these cryptocurrencies means that the identity of the sender and receiver is highly anonymous, a feature that counteracts ongoing efforts by global authorities to monitor crypto transactions.
More Exchanges To Follow?
As per the FATF requirements, cryptocurrency exchanges operating in the over 200 nations where the international organization presides must come under the new rules over the next twelve months.
With that in mind, it would come as little surprise if more exchanges follow the path which OKEx has taken, that is, delist privacy coins in a bid to focus more on reaching regulatory compliance for widely accepted cryptocurrencies like Bitcoin.
If that were to happen, however, it likely will have a significant impact on the value of these cryptocurrencies with Monero and ZCash currently ranking among the leading altcoins by market cap.
Noteworthily, Stmarket.co recently reported the delisting of ZCash (ZEC) by Coinbase for its UK customers, even though the coin’s developer claimed it was not for regulatory reasons.
However, the fact that exchanges are taking these measures shortly after the FATF rule was announced, perhaps suggests that these exchanges are open to ending support for these coins in order to stay in business and avoid the regulatory onslaught.