South Korean crypto exchange Upbit announced it has stopped trading services for six cryptocurrencies, including privacy coins.
Prevent the risk of money laundering
On September 20, UpBit said it would cancel the listing of Monero (XMR), DASH, ZCash (ZEC), Haven (XHV), BitTube (TUBE) and PIVX on September 30.
The exchange said it will not support the deposit functions and will cancel all orders before the end of trading support with won, Bitcoin, Ether, and USDT.
Upbit makes it clear that the reason for stopping these coins is to prevent the risk of money laundering and cash flows from outside unofficial networks coming into the market.
Upbit followed OKEx
This news was published by Upbit just days after deleting the listing of similar cryptocurrencies of OKEx. The reason given by OKEx is to comply with the new international regulations.
OKEx Korea confirmed to cancel transactions Monero, Dash, Zcash, Horizen (ZEN) and Super Bitcoin (SBTC) on October 10. The reason given by both Upbit and OKEx is that the coins are focused on privacy, so they will not fit the guidelines of the FATF Financial Intergovernmental Force.
FATF is an intergovernmental organization established in 1989 under a G7 initiative to develop anti-money laundering policies around the world. Although its recommendations are not mandatory, non-compliant countries may appear on the financial blacklist.
Many exchanges can “imitate” in the future
As previously reported, new regulations require businesses to identify both parties in a transaction if the transaction value is greater than $ 1,000.
More than 200 countries will need to enforce the rules by June 2020, although many concerns that this regulation will reduce the decentralization of blockchain.