Privacy coins begone!

In a follow up to our popular series Shitcoins begone, we start a new series called Privacy coins begone!

As we have previously reported governments and law enforcement institutions worldwide have been lobbying for a more active approach to money laundering. The FATF has centered its focus on cryptocurrencies in order to combat money laundering and the financing of terrorist and criminal organizations.

Privacy coins begone!

We have reported on the successful shutting down of criminal organization’s money laundering, and the seizure of Bitcoin and privacy coin Monero by Europol. This week has seen cryptocurrency exchanges joining in the fight in order to meet the FATF guidelines for AML with OKEX and now Upbit ceasing trading of certain privacy coins.

The full release by OKEX with regards to the delisting of the privacy coins can be found here, and we have listed the main points below:

Okex will cease support for the following pairings on October 10th 2019:

• Monero (XMR): XMR / KRW, XMR / BTC, XMR / ETH, XMR / USDT
• DASH: DASH / KRW, DASH / BTC, DASH / ETH, DASH / USDT
• ZCache (ZEC): ZEC / BTC, ZEC / ETH, ZEC / USDT
• Horizon (ZEN): ZEN / BTC, ZEN / ETH, ZEN / USDT
• Super Bitcoin (SBTC): SBTC / BTC

Withdrawal of these assets will end on December 10th 2019

Okex cites the following clauses from their customer service agreements for the delisting:

• If the support of transactions in a particular cryptocurrency violates laws or regulations / policies of government agencies and major agencies
• Or similar to the reasons listed above or as necessary for customer protection

They also refer directly to the FATF guidelines:

Detail:

In October 2018 , the first General Assembly , the International Anti-Money Laundering Organization ( “FATF”) agreed to apply the criteria for Virtual Asset Service Providers. In February 2019 , when the 2nd General Assembly was held , the words in the notes, except for the transfer of virtual assets, were finalized and announced in a statement.

According to the statement corresponding to FATF R.16, OKEx Korea has restricted its implementation as the ‘ travel rule’ recommends that exchanges be able to collect relevant information such as the name and address of the sender and recipient of the virtual asset. privacy-oriented cryptocurrency, aka that ‘ the dark Coin “has decided to take the deal end-of-support measures of the corresponding event.

Upbit do not reference the FATF guidelines in their delisting announcement but do state the following:

the decision to end trading support for the crypto-asset was also made to block the possibility of money laundering and inflow from external networks. Upbit will continue to consider crypto-asset that represent anonymity functions as candidates for designation of investment warning crypto-asset.

End of Market Transaction Support by Crypto-Asset

1) Monero(XMR)

• Market : XMR/BTC, XMR/ETH, XMR/USDT
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

2) DASH(DASH)

• Market : DASH/BTC, DASH/ETH, DASH/USDT
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

3) ZCASH(ZEC)

• Market : ZEC/BTC, ZEC/ETH, ZEC/USDT
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

4) Haven(XHV)

• Market : XHV/BTC
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

5) Bitube(TUBE)

• Market : TUBE/BTC
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

6) PIVX(PIVX)

• Market : PIVX/BTC
• Expected end of support date/time : 2019.09.30 10:00 (SGT)

Withdrawal of the delisted cryptocurrencies on Upbit will be supported until 19th October 2019

###

Relevant news