Coincheck, the digital asset exchange platform based in Japan announced that Monero [XMR], Zcash [ZEC], and Dash [ DASH] will be removed from the platform. Along with these privacy coins, Augur [REP] will also be delisted in the month of June.
Crypto traders are being notified to withdraw their XMR, DASH, ZEC, and REP before 18th June. Coins that are existing even after 18th June will be sold at the market price and converted to Japanese Yen [JPY] and credited to the customer.
According to Coincheck, the high level of anonymity behind these coins can cause many risks in the future, which is the main reason behind them delisting these cryptocurrencies. Money laundering is one of the possible drawbacks of allowing the transactions with these privacy coins. Identification of the recipients of these transactions is virtually impossible on their blockchains.
Coincheck is currently recovering from the huge NEM hack they faced earlier, they received a business improvement order from the Japanese Financial Services Agency [FSA] in the month of March. FSA has given them the permission to continue its operation, however, Coincheck will be constantly monitored by FSA. During this period, FSA made it mandatory for all the Japanese based exchange platforms to have a risk management report in case of any hack that takes place in the future.
Coincheck is also on a mission to review their management systems and implementing better strategies to provide high security to the customer accounts.
Coincheck says that:
“It is necessary [for us] to further develop and strengthen the management system of AML / CFT in the future.”
Following the major hack in the month of January, the Japanese exchange was purchased by Monex. Coincheck lost $530 million worth NEM during the hack. All the steps they are currently taking is based on the set of instructions given by the FSA.
However, the exchange continues to support trading other coins such as BTC, ETH, ETC, LSK, BCH, XRP etc.