OKEx Korea delisting privacy coins from its base to comply with FATF rules
By Inkarias - 2019-09-16
In general, exchanges have not been as public about their criteria for delisting cryptocurrencies. In traditional markets, exchanges will generally only delist stocks if their trading falls below a certain price for a sustained period or if the developers are officially out of the projects.Recently , The South Korean exchange OKEx announced the removal of support for five major altcoins due to new international regulations.
FATF rules halt privacy coins tradingThe Financial Action Task Force is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering among all individuals and for all currencies. This entity sees privacy features as a main source of crims.On Sept. 10, OKEx Korea confirmed the information that the trading of Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC) would stop on Oct. 10.The reason associated, said the exchange, is that as since they are focused on privacy, the coins fall foul of new guidelines set out by the FATF.In the current state, crypto transaction rules demand businesses to identify the two parties sending funds to each other if a transaction is worth more than around $1,000.
A first step for more exchangesMore than 200 countries should theoretically implement the rules by June 2020, despite concerns that doing so is physically impossible for many decentralized blockchains. The five cryptocurrencies outlined by OKEx all make it all but impossible to identify the sender and recipient of a transaction by design as the privacy features associated with these currencies doesn’t allow to find the information on the chain.
An OKEx representative told announced that the coins will be delisted only on OKEx.co.kr but will remain listed on the global OKEx platform.