Coincheck to Delist Monero and Three Other Privacy Coins under Japan’s FSA Ban
Japanese cryptocurrency exchange Coincheck has confirmed that it will delist a number of privacy coins under the FSA ban.
According to a notice released on Friday, the Coincheck platform will be abolishing the handling of four privacy coins including Monero (XMR), Dash, Zcash(ZEC) and Augur’s Reputation (REP) coin by June 18, 2018. The exchange reported that any of the banned cryptocurrencies remaining in user’s wallets after the abolishment will be converted to Japanese Yen at the market rate.
Coincheck added that the ban was part of a business improvement order received from the Financial Services Agency (FSA). The exchange had come under heavy scrutiny by the regulators after experiencing what is known as the “second largest ever cryptocurrency heist” in January, losing approximately $530 million belonging to traders which they then struggled to pay back from their own coffers.
Tight regulationS have been imposed on the Japanese cryptocurrency industry as the FSA seeks to enforce more transparency in the crypto market after the Coincheck hack. Privacy tokens offering high levels of anonymity coming under the regulator’s axe is of little surprise as they continue to search for the stolen NEM tokens from Coincheck that seem to have been moved from wallet to wallet as anonymously as possible.
Coincheck had recently been acquired by Japanese online brokerage firm Monex which seeks to revitalize the platform with rumors of a possible US extension. However a ban on privacy coins like Monero, which has gained an enormous popularity among Japanese crypto traders, will present a huge setback for the company.
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