Privacy coins such as Monero are under threat. This is because more and more exchanges are finding it hard to offer them in several jurisdictions. Monero, the largest privacy coin has been responding to this. In recent days, the altcoin has hit a new 6 month low. While most regulators don’t agree with the concept of cryptocurrencies they are particularly crossed about privacy coins. This is because privacy coins make it impossible to track transactions. They are therefore easy payment options for illegal products and services. They are also perfect for people looking to evade taxation which the government doesn’t take kindly.
One institution that tackles money laundering has taken a particular interest in these coins, FATF. The Financial Action Task Force (FATF) is comprised of 39 countries. They dictate that customer information must be shared with the agency whether trading or making transactions through a bank or virtual currency company. Because of the privacy involved dealing with the altcoins, exchanges are unable to get this info from clients dealing with them.
Top Exchanges Delisting Top Privacy Coins
One of the first exchanges that have taken the decision to delist privacy coins is OKEx. The exchange announced a few weeks ago that it will delist Monero, Zcash, Dash, Horizen, and Super Bitcoin. The exchange announced that deposits will be halted on the 10th of October, and stop withdrawal services on the 10th of December 2020. Soon after the announcement by OKex, Upbit also announced that it will delist a number of privacy coins. Coinbase, on the other hand, has announced it will delist Zcash, the one privacy coin offered on its platforms.
It is unclear how many exchanges are affected by FATF rules but it is clear that where the rules apply, changes will be drastic. It also means that in the future, this technology might die-off. Privacy coins are under threat since their delisting sees their exposure drop and with it, value.
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