Japanese Exchange Coincheck delivers anonymous cryptocurrency after checking the regulator

Japanese Exchange Coincheck delivers anonymous cryptocurrency after checking the regulator

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The Japanese exchange Coincheck will stop servicing trades with three cryptocurrencies intended for anonymous transactions: Monero, Dash and ZCash. To this, it could be prompted by regulators who demanded a number of changes to the principles of the trading platform operation after the January crackdown, when over $400 million in NEM cryptocurrency was extracted by intruders.

According to the Japan Times, with reference to sources familiar with the situation, Coincheck will buy three anonymous cryptocurrency from its customers at a fixed rate.

Coincheck froze the trade and withdrawal of all the сryptocurrency after the January attack, partially resuming trading on March 12. The exchange also compensated losses of 260,000 users, paying them $440 million from their own financial reserves.

According to the Japan Times, half of the stolen NEM has already been transferred to other cryptocurrencies and will be laundered in the future. The funds were transferred by hackers on February 7 through a site in a darknet. Some of them were later discovered on an unnamed Canadian stock exchange and the Japanese stock exchange Zaif.

On March 8, Coincheck received a message from the regulator, in which he demanded a number of improvements in the principles of the trading platform. In particular, it stated that Coincheck does not use reliable mechanisms to prevent money laundering and terrorist financing.

Japan Times notes that the decision to delist Monero, Dash and ZCash is likely to be a response to the regulator’s demand.

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