According to the statement from the crypto exchange, the privacy coins “violate regulatory laws.” Because of this, OKEx South Korea will delist the coins as of the 10th of October. Users of the exchange have until the 10th of December for withdrawals for the five coins.
According to a report from Bridge Kyungjae, a spokesperson for OKEx Korea spokesperson said: “[Anonymity tokens] violate the laws of regulatory agencies and major institutions. The Financial Action Task Force (FATF) has recommended abiding by the Travel Rule, and we are taking steps to follow it.”
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The FATF is the global money-laundering watchdog. Earlier this year in June, the authority issued its final crypto guidelines in which it retained the “travel rule.” This rule requires exchanges to collect and transfer customer information during transactions.
The information needed to be collected includes the originator’s name, account number, and location information, among others. However, according to OKEx Korea in its statement, the privacy-oriented coins don’t allow exchanges to collect this information and are, therefore, not compliant.
“According to the statement corresponding to FATF R.16, OKEx Korea has restricted its implementation as the ‘ travel rule’ recommends that exchanges be able to collect relevant information such as the name and address of the sender and recipient of the virtual asset. privacy-oriented cryptocurrency, aka that ‘ the dark Coin “has decided to take the deal end-of-support measures of the corresponding event,” the [translated] statement said.
OKEx continues to delist coins
The upcoming delisting from OKEx Korea follows on from the exchange already delisting some 16 tokens this year. Specifically, the company stopped supporting AirSwap (AST) and Digibyte (DGB) towards the beginning of this year.