Coincheck, the Japanese cryptocurrency exchange, has decided to delist trading-pairs for privacy-centric cryptocurrencies like Zcash (ZEC), Dash (DASH) and Monero (XMR) from the next month.
On Friday, the Tokyo based exchange which was bought by brokerage firm Monex following a prominent January hack that saw the platform lose 530 million USD in NEM tokens (XEM), reported that it will never again encourage trading for these cryptocurrencies which give their clients the capacity to make exchanges that are less traceable than those made with bitcoin and most other blockchain-based coins.
Coincheck said that it went with the choice to stop support for these cryptocurrencies following a “drastic review” of its internal framework and as a component of another “management strategy that thoroughly protects customers.” The firm said it isn’t appropriate to keep on dealing with these currencies because of the risk they present to the firm’s capability to keep up the consistency with anti-money laundering (AML) regulations. As reported by CCN, Japan’s Financial Services Agency (FSA) the agency that regulates and licenses cryptocurrency trading platforms to work in the county, is reputed to be pressuring exchanges to delist privacy coins.
Coincheck’s FSA license was pending at the time of the record-setting hack in January and was obtained by Monex to some degree since its former owners were unable to abide by the business improvement order that was issued by FSA after the theft. As such the move of delisting these coins could be interpreted as an endeavor by the new administration to bring the platform once again into the FSA’s good graces.
Augur’s reputation token (REP), which will be the local resource of the startup’s prediction market, will also be delisted, maybe because of its apparent relationship with unlicensed betting.
Brokers have until June 18 to pull back their XRM, DASH, ZEC, and REP. Coins which aren’t withdrawn will be sold at market price and changed over into JPY, which will then be credited to client accounts.