Recently there has been so much pressure on the regulation of the private coins. Cryptocurrency exchanges have been receiving a lot of pressure to delist these coins and block users from accessing them.
OKEX Exchange, a South Korean cryptocurrency exchange announced on Monday that it is stopping the trading of Dash (DASH), Horizen (ZEN), Monero (XMR), Zcash (ZEC) and Super Bitcoin (SBTC) from October 10. These privacy coins gave users extra privacy features. Their withdrawal services will be halted on December 10, according to OKEX.
Violation of FATF Rules
The exchange said that the decision had been arrived at after these coins were found to go against the FATF (Financial Action Task Force) rule, commonly known as the travel rule.
FATF in June laid out watchdog guidelines in crypto on the travel rule. The regulation required exchanges to transfer and also collect client information during transactions. This information should include the originator's name, his location information, and his account number. The account name and account number of the beneficiary should also be communicated.
OKEX Korea said that these private coins did not allow such information to be obtained. That is the main reason why the exchange decided to delist these coins. The crypto transaction rules required businesses to have information about the parties involved if the trade is over $1,000.
OKEX spokesperson also said that the decision affects only the Korea unit of crypto exchanges and not globally. It clearly shows that the Korean government asked the country's exchanges to implement the new rules by FATF.
Other Exchanges to Follow Suit
It is categorical that more exchange platforms are also going to halt the trading of privacy coins. It is estimated that over 200 countries are going to implement these rules by the end of June 2020. This is going to happen according to many sources even though it does not seem practical for numerous decentralized blockchains.
In transactions involving these five delisted cryptocurrencies, the exchanges are not able to determine the recipient or the sender of the coins. An OKEX representative, however, stated that the halt would only affect OKEx.co.kr. The coins will still be available on the entire OKEX platform.