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Coincheck to Remove Monero and Three Other Anonymity-Focused Altcoins

UTC by Julia Sakovich · 3 min read
Coincheck to Remove Monero and Three Other Anonymity-Focused Altcoins

The orders from the Japanese FSA enforced Coincheck to delist four cryptocurrencies that are considered to give too much anonymity to its holders.

As it has become known, the digital asset exchange Japan-based platform Coincheck announced removal of Monero (XMR), Zcash (ZEC), Dash (DASH) and Augur’s Reputation (REP) coin from its platform.

Trading of these four altcoins at Coincheck will be ceased by June 18. It should be done in accordance with counter-terrorist financing (CFT) and anti-money laundering (AML) measures issued Japan’s Financial Services Agency.

Following its new policy aimed at increasing security of the crypto market, the Japanese FSA has taken a decision to ban cryptocurrencies that grant significant anonymity to those who hold them.

It is believed that the high level of anonymity behind the above-mentioned four coins can bring additional risks in the future. Money laundering can become one of the possible consequences of further allowing the transactions with these coins as it is absolutely impossible to identify the recipients of these transactions on their blockchains.

Coincheck has also explained that if some of the users hold any of the banned cryptocurrencies in their wallets after June 18, these holdings will be converted to Japanese Yen at the market rate.

In 2018, Coincheck has already been widely discussed after it became a target for hackers in January. This hack is considered to be one of the largest ever cryptocurrency heists. As a result of this attack, the platform lost approximately $530 million of its clients’ money. Nevertheless, Coincheck promises to compensate at least $420 million, paying for each stolen token not $1 but $0.81.

After this major theft, Coincheck has accepted a proposal from Japanese financial services provider Monex Group Inc. that wanted to acquire the cryptocurrency exchange. Having acquired 100% shares, Monex Group is now a new owner of Coincheck.

With a view to prevent potential hacks, the financial authorities announced a necessity to enforce more transparency in the crypto market. The decision to impose a ban on tokens offering high levels of privacy and anonymity has been taken as a result of continuous search for the tokens that were stolen from Coincheck.

Nevertheless, still all the attempts have been futile. That’s why it is believed that they have been transferred from one wallet to another with the increased level of anonymity.

Monero, Zcash, Dash and Augur are among those coins that guarantee their holders full anonymity which could cause quite serious risks to the security of transactions with them. That’s why theat are to be delisted from the exchage despire their high popularity among crypto traders.

For example, Monero, that according to CoinMarketCap has a market capitalization of over $3 billion and at the press time is traded at $199.13, has become one of the most popular cryptocurrencies, nevertheless, it is widely criticized for being the new crypto for criminals.

Coincheck has also informed that its team will continue working on reviewing its own controls with a view  to comply with regulations from the FSA and to enhance security and transparency of all transactions.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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