OKEx Korea Pauses Delisting of Zcash And Dash Privacy Coins, Factoring in FATF Notice
The South Korean branch of crypto exchange Okex has announced that it has temporarily halted delisting of Zcash and Dash, CoinDesk reports.
In a notice issued on Thursday by OKEx Korea, the exchange stated that it was suspending its decision to delist the two privacy cryptos pending a review of compliance with the Financial Action Task Force (FATF) standards.
At first, the crypto exchange announced that it was delisting five privacy coins comprising of zcash (ZEC), Dash (DASH), Monero (XMR), Horizen (ZEN) as well as Super Bitcoin (SBTC). According to the notice issued, the five had been delisted as per the FATF’s directive known as ‘travel rule’. The rule sets out how regulators should oversee the crypto industry. As per the travel rule, crypto exchanges are supposed to collect and give out requisite information to the relevant regulatory bodies to help in monitoring transactions. The exchanges are supposed to give out information about the name as well as addresses of the sender and that of the recipient of any digital currencies.
According to OKEx Korea, Monero, Super Bitcoin and Horizen will remain delisted from the exchange’s platform starting Oct. 10. The exchange stated that a final decision regarding support for zcash and dash will be given after the exchange reviews their compliance.
In an email to CoinDesk, Electric Coin Company VP for marketing and business development, Josh Swihart, which was part of zcash developers, revealed that his firm was working closely with OKEx regarding compliance requirements.
Swihart explained that zcash was completely compatible with all the FATF requirements and he was excited that OKEx had decided to take extra time to evaluate zcash’s compliance information.
After FATF gave the travel rule recommendations, exchanges have been under intense pressure to stop supporting privacy coins. A notable example is Coinbase which delisted zcash from its UK subsidiary in August. ConDesk reports that the move was necessitated by the need to have a fresh relationship with ClearBank following Barclay’s cancellation of its agreement with the exchange.
South Korean based crypto exchange Bithumb also caved to pressure and stopped its support for zcash recently.
OKEx had indicated in September that it will drop its support for the five privacy coins on Oct 10.