OKEx With South Korea hosting this move, the country's division of the global exchange giant has confirmed the exclusion of certain privacy-centric digital assets. crypto trading platform This development confirms that OKEx is joining the list of exchanges stepping back from offering high-anonymity tokens.
Such actions are additional indicators of a further decline in the South Korean cryptocurrency trading arena, which is already suffering under stringent regulations and poor market performance. Commentators predict more closures for platforms in this region.
Privacy Coins No Longer Available on OKEx in South Korea
In a statement According to a public statement, OKEx will remove Dash, Monero, Super Bitcoin, Horizen, and Zcash, which are collectively recognized as privacy coins.
The company's decision comes after considering that these tokens might conflict with newly enforced regulations across different regions.
Individuals holding these specific cryptocurrencies have time until December 10, 2019, to withdraw their tokens, with trading activities ceasing by October 10, 2019.
This step is part of OKEx's strategy to align with the Financial Action Task Force's (FATF) compliance rules.
In October 2018, the AML organization introduced a 'travel rule' demanding robust KYC practices, challenging for exchanges dealing with privacy coins.
These protocols require detailed customer information, such as the wallet addresses of crypto senders and receivers, which privacy coins inherently mask.
Regulators Increase Pressure on Crypto Platforms
OKEx is now among the latest exchanges opting out of dealings with privacy tokens, a trend that is gaining traction. regulatory pressure With FATF member states intensifying scrutiny, tighter AML measures targeted at the crypto sector have come into play.
Coincheck, a prominent Tokyo-based exchange, delisted Monero and Zcash in 2018, prompting significant challenges due to oversight intensification.
Sharing insights with the Wall Street Journal, Coinbase's chief compliance officer Jeff Horowitz discussed these regulatory challenges. revealed :
He stated, 'There is a solution to this issue, but currently, no method exists to easily share this information.'
Therefore, Horowitz mentioned that exchanges, including Coinbase, are collaborating to devise comprehensive compliance frameworks. In Japan, an association known as JVCEA was formed for self-regulation among exchanges.
Globally, this shared approach could ease compliance burdens linked to financial regulations for crypto exchanges.
According to Tom Neylan from the FATF, the task force's directives extend beyond anti-money laundering benefits, including post-incident financial tracking.
South Korea's Crypto Trading Sector Faces Further Downsizing
This regulatory shift presents a formidable obstacle for South Korean crypto platforms, as banks impose stricter AML criteria during account service renewals.
The removal of these five tokens is likely to lead to a substantial decrease in trading volumes within the nation's crypto market. Reports highlight the looming financial instability of local platforms. Blockonomi In 2018, among the 'Big Four' exchanges in the country, only one maintained operations amidst the regulatory crackdown.
Some local exchanges have ceased operations, citing regulatory constraints as a major factor influencing their decisions. posted a profit Several blockchain startups are increasingly choosing to list on international exchanges to circumvent domestic limitations. regulatory problems .
Osato Avan-Nomayo, an enthusiast of Bitcoin, shares his industry insights while navigating personal dilemmas or competing in Scrabble. Contact via [email protected]
