The South Korean hand of the OKEX cryptocurrency exchange has stopped, at least for now, the delisting of two privacy coins due to regulatory pressure from the Financial Action Task Force (FATF).
According to a notification from the exchange on Thursday, the planned suspension of support for zcash (ZEC) and dash (DASH) has been revised.
OKEX first announced its intentions to remove five privacy coins - also including monero (XMR), horizen (ZEN) and super bitcoin (SBTC) - in September, citing FATF's controversial “travel rule” for crypto asset service providers, which sets out how national regulators must control the industry.
According to the travel rule, crypto exchanges should be able to collect and disseminate relevant information for monitoring transactions, such as the name and address of the sender and recipient of virtual currencies.
Monero, horizen and super bitcoin are still on the exchange list to date, October. 10, said OKEx. The final decision on support for zcash and dash will be announced after compliance verification.
Speaking to CoinDesk via email, Josh Swihart, vice president of marketing and business development at Electric Coin Company, a co-developer of zcash, said his firm has been working with OKEx since the September announcement.
“Zcash is fully compatible with all FATF recommendations, including travel policies. We work with OKEx and other companies in South Korea and are pleased to hear that OKEx has decided to spend additional time on further evaluating Zcash support based on new compliance information.”
Since the announcement of the FATF, pressure has been growing on exchanges to abandon the support of privacy coins.
It is noteworthy that Coinbase dropped zcash from its British stock exchange in early August. A source told CoinDesk that this move was related to the formation of a new banking relationship with ClearBank after Barclays withdrew its services from the company.
The South Korean exchange Bithumb has also recently lowered its zcash.
According to Svihart, Electric Coin is actively lobbying regulators and legislators over its cryptocurrency.
An open regulatory and compliance summary published in September stated:
“Zcash was designed to protect consumers' financial privacy while maintaining compatibility with global AML / CFT standards, including the FATF recommendations that were adopted in June 2019. It is important to note that the confidentiality provided by Zcash does not prevent regulated organizations from fulfilling their regulatory obligations.”