The Japanese based cryptocurrency exchange, Coincheck, has decided to remove Monero, Dash, and Zcash due to higher risks of money laundering. Coincheck recently made headlines for the recent hack on their exchange which resulted in near $600 million worth of NEM being stolen.
Coincheck has said they will reimburse the stolen NEM, which will take a huge toll on the exchange, and most likely part of the reason to delist anonymity currencies. Monero, Dash, and Zcash are the leading privacy coins which Coincheck feels are easier targets when it comes to money laundering. Experts have reported that half of the stolen NEM was most likely converted into other currencies on the Darknet.
Japan Digital Design Inc. Chief Technology Officer Masanori Kusunoki said:
“It has become evident we cannot block currency laundering just because all transactions are recorded.”
It seems the NEM hackers set up a website on the 7th of February, a little over a week after the hack, and began converting the stolen NEM there. There are still transactions being made that may be related to the NEM hack.
Coincheck users should be able to withdraw their XMR, DASH, and ZEC for the time being. Coincheck is also considering buying the 3 delisted currencies from customers who agree to sell them at a fixed price. No further details have been given on the delisting and removal process. Privacy coins have been getting a lot of spotlight recently as Monero has passed Bitcoin when it comes to the Darknet’s currency of choice. It is unsure if other exchanges will follow suit in delisting privacy coins in the future.