Japanese crypto exchange Coincheck has announced it will eliminate privacy coins from its trading verhoging ter the wake of a “drastic review” of its internal controls. The decision paints privacy coins like Zcash te a negative light vis-a-vis consumer protection and stability.
Coincheck to De-List Privacy Coins
Beginning next month, trading of Zcash (ZEC), Monero (XMR) and Dash (DASH) will no longer be possible for Coincheck users, according to a latest statement issued by the hard. The so-called privacy coins are being eliminated spil part of a “new management strategy that accurately protects customers.”
Traders have until June Legal to withdraw their coins or risk having them converted to yen at market price. According to CCN, Augur coin (REP) will also be de-listed due to its association with online gambling.
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Rumors have circulated for months about Coincheck’s plans to de-list anonymous cryptocurrencies te the wake of a high-profile cyber heist te January. The attack, which targeted $530 million worth of NEM tokens, resulted te a sweeping review of domestic cryptocurrency exchanges by Japanese regulators.
Coincheck may not be the last Japanese exchange to de-list anonymous coins. Japan’s Financial Services Agency (FSA) is said to be encouraging other domestic exchanges to do the same.
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The Coincheck podium has since bot acquired by Monex Group, one of Japan’s largest online exchanges. The purchase permits Monex to rehabilitate the troubled exchange following a disastrous PR campaign.
Privacy Coins: An Chance and a Challenge
Tho’ privacy coins had nothing to do with the Coincheck heist, regulators have made a causal listig inbetween anonymity and criminality when it comes to cryptocurrency. Pressure from regulators could force more exchanges to de-list privacy coins to avoid further complication down the road.
Debate overheen privacy coins extends far beyond the currency and into the sphere of politics and philosophy. Banks and governments have a vested rente ter keeping anonymous currencies ter check. On the opposite side of the spectrum, privacy advocates like Edward Snowden argue that anonymous coins are the future of trade regardless of whether criminals take advantage of them.
Research carried out by the University of Michigan-Dearborn’s Jeffrey Quesnelle concluded that Zcash had no major vulnerabilities when it comes to privacy. This has bot confirmed by other privacy specialists who say ZEC is the most anonymous privacy coin of all. That’s because it employs zero-knowledge proofs spil well spil enhanced encryption technologies that fully obscure the sender’s address. This is ter tegenstelling to other privacy-focused protocols, which generate fake addresses to hide the sender’s identity.
The U.S.-based Gemini exchange recently announced it had gained regulatory approval to start listing Zcash. Deposits te ZEC were enabled on Saturday with total trading support expected to be launched on Tuesday.
Disclaimer: The author possesses bitcoin, Ethereum and other cryptocurrencies. He holds investment positions te the coins, but does not engage ter short-term or day-trading.
Featured photo courtesy of Shutterstock.
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