Cryptocurrency exchange OkEx announced on Monday that it is delisting all privacy-oriented cryptocurrencies, including, Dash (DASH), Monero (XMR), ZCash (ZEC), Horizen (Zen) and Super Bitcoin (SBTC). The exchange’s Korea-based office announced the same on Monday.
In June, this year, the Financial Action Task Force (FATF) had released regulations pertaining to cryptocurrencies, money laundering and the like. These regulations had included one particular rule called the ‘travel rule’ which required exchanges to collect and transfer customer information during transactions.
News portal The Block reported that since the five privacy-oriented coins do not allow the collection of the required information, the exchange has decided to delist the coins. A spokesperson had told the news portal that the action has only been taken for Korea. The news portal speculated that the Korean government had asked the exchange to comply with the FATF guidelines.
Interestingly, Reddit saw a lot of reaction over the move. Quoting a portion of the press release put out by OKEx, which said, “as these ‘violate’ FATF’s ‘travel rule'”, a Reddit user said, “I don’t think this is the case actually. As long as they enforce KYC/AML for each account, they should be able to tie deposits and withdrawals to a certain person. In addition, they can send this information to another service (which is essentially what the travel rule is about) in case a direct withdrawal (i.e. a withdrawal to another service) is made.”
The user further added, “Importantly, FATF doesn’t have any regulatory authority of its own. FATF makes recommendations, not laws. Member countries can adopt all, some, or none of FATF’s recommendations. There are basically no repercussions for not adopting (or for violating) FATF recommendations.”
OKEx was last in the news when we reported that it was planning to list Hedera Token (HBAR), the native cryptocurrency of the Hedera Hashgraph public distributed network to its spot market with HBAR/BTC, HBAR/USDT and HBAR/USDK in the coming days.
(Image Credit: BitCongress)