Japanese exchange Coincheck has confirmed that it is delisting three privacy coins: monero, dash, and zcash. Augur’s reputation token will also be delisted next month. The exchange made this decision after receiving a business improvement order from the country’s financial regulator following the NEM hack.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
Coincheck Delisting 4 Cryptocurrencies
Following reports that Coincheck was going to delist monero (XMR), zcash (ZEC), and dash (DASH), the exchange has now confirmed that those cryptocurrencies will be delisted along with Augur’s reputation token (REP).
The four cryptocurrencies will be delisted on June 18, Coincheck emphasized, adding:
The target currencies [XMR, ZEC, DASH, and REP] held on the discontinued date will be sold at the market price and converted into Japanese yen.
The sales’ proceeds will then be credited to the customers’ accounts. Before that date, customers can sell or transfer these cryptocurrencies. The exchange says it has received many transfer requests, warning that it may be several days to complete the transfers.
Business Improvement Order
Following the NEM hack in January, Coincheck received a business improvement order from the Japanese Financial Services Agency (FSA) on March 8. The exchange is a “deemed dealer,” meaning it has been allowed to operate while its application is being reviewed by the agency. The exchange has now been acquired by Monex Group. After delisting the above cryptocurrencies, Coincheck will continue to support BTC, ETH, ETC, LSK, FCT, BCH, XRP, XEM, and LTC.
In complying with the FSA order, the exchange says it is “drastically reviewing” its internal control and management control systems, as well as rethinking its “management strategy that thoroughly protects customers,” the announcement reads, adding that:
It is necessary [for us] to further develop and strengthen the management system of AML / CFT [Anti-Money Laundering/ Counter-Terrorist Financing] in the future.
Monex CEO Oki Matsumoto “expects the exchange to secure an official license in Japan next month,” Fortune reported on Friday.
FSA Cracks Down on Privacy Coin Listings
Nikkei reported earlier this month that the FSA has set new criteria for crypto exchanges. One of them concerns the types of cryptocurrencies listed on exchanges. “Those granting a high level of anonymity and easily used for money laundering will as a general rule be banned,” the news outlet described.
The FSA “strongly requests money laundering and counter-terrorist financing measures not only for Coincheck but also for other virtual currency exchange operators,” News24 wrote.
Out of the 16 licensed crypto exchanges in Japan, none have listed XMR, ZEC, DASH, or REP on their applications with the FSA.
What do you think of Coincheck delisting the four cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock, Nikkei, and Coincheck.
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