Coincheck Confirms ban on Privacy Focused Altcoins

Coincheck Confirms ban on Privacy Focused Altcoins


Following a more than $500 million hack, Japanese cryptocurrency exchange Coincheck has confirmed plans to delist Monero (XMR), Zcash (ZEC), Dash (DASH) and Augur (REP) as soon as June 18th. This decision comes under the new ownership of Monex and after Japan’s Financial Services Agency (FSA) push to ban cryptocurrencies focused on privacy and anonymity. Coincheck struggled to compensate victims as the tokens stolen from Coincheck’s wallet were transferred discreetly.

Shortly after the Coincheck hack, the FSA revised its regulatory framework as a way of demanding that exchanges and cryptocurrency brokers provide more transparency  Coincheck announced that account holders with wallets containing the recently banned cryptocurrencies will have these balances converted to Japanese Yen after June 18th.

More to Come

Other exchanges operating in Japan may also follow Coincheck’s lead as the FSA is said to be encouraging across the board compliance. The FSA appears to be linking all privacy coins to criminal activity and the new ban attempts to target money laundering, organized crime and other criminal elements. Coincheck stated that the decision is a part of their initiative to “drastically review “ their internal control policies and comply with the FSA’s counter terrorism funding and anti-money laundering regulations.

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