OKX announced that it will delist privacy tokens and their trading pairs due to regulatory concerns.
OKX, the second-largest offshore cryptocurrency exchange by trading volume, announced that it will delist almost all privacy coins and suspend deposits of eight tokens starting from Dec. 27, citing regulatory requirements and compliance risks.
The Affected Tokens
The affected tokens are FSN, ZKS, CAPO, CVP, XMR, DASH, ZEC, and ZEN, which are designed to enhance the anonymity and privacy of transactions on the blockchain. OKX will also delist their trading pairs and urge users to withdraw their balances soon.
The release said,
"Suspension on token withdrawal: We will suspend the withdrawal of the tokens mentioned above: FSN, ZKS, CAPO, CVP, XMR, DASH, ZEC, and ZEN, starting from 8: 00 am UTC on March 5, 2024. Please manage your assets promptly."
Regulatory War Against Privacy Coins
Privacy coins have been under increasing scrutiny from regulators and law enforcement agencies, who fear that they could facilitate money laundering, tax evasion, and other illicit activities. Several other exchanges, such as Coinbase and Bittrex, have also removed privacy coins from their platforms in the past.
The move by OKX follows a similar decision by Binance, the world's largest cryptocurrency exchange, to reclassify certain privacy coins in some European markets in June. Binance said that it would maintain the availability of trading for these digital assets by aligning them with EU regulations, which require exchanges to implement anti-money laundering and know-your-customer measures.
Privacy Coins Account for 1% of Total Coin Market Cap
The future of privacy coins on Binance remains uncertain, as the exchange faces regulatory challenges and investigations in several jurisdictions, including the U.S., the U.K., Japan, and Germany. Binance has said that it is committed to complying with local laws and cooperating with regulators.
Privacy coins have a loyal fan base among cryptocurrency enthusiasts, who value their ability to protect their identity and financial privacy. However, they also face technical and market challenges, such as scalability, interoperability, and liquidity issues. According to CoinMarketCap, the total market capitalization of privacy coins is about $7.5 billion, or less than 1% of the total cryptocurrency market.
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