South Korean arm of crypto exchange, OKEx Korea to drop down 5 major private altcoins over international regulations.
On September 10th, OKEx published a blog post that the following altcoins will be removed from their exchange by 10th Oct: –
Monero (XMR)
Dash (DASH)
Zcash (ZEC)
Horizen (ZEN)
Super Bitcoin (SBTC)
FATF Demand
The exchange mentioned that it will remove those cryptos that “violate laws or regulations [and] policies of government agencies and major agencies.”
The five altcoins fall short of the new guidelines set by Intergovernmental body or Financial Action Task Force (FATF).
The FATF February proposal said that when businesses are involved in crypto transactions countries should-
“… obtain and hold required and accurate originator information and required beneficiary [receipient] information and submit the information to beneficiary institutions … if any. Further, countries should ensure that beneficiary institutions … obtain and hold required (not necessarily accurate) originator information and required and accurate beneficiary information …”
FATF wants to check over crypto exchanges to prevent money laundering. It stresses on the identification of two parties if the transactions are done above $1000.
Under FATF’s new guidance a transaction should include:-
(i) originator’s name (i.e., the sending customer); (ii) originator’s account number where such an account is used to process the transaction (e.g., the VA wallet); (iii) originator’s physical (geographical) address, or national identity number, or customer identification number (i.e., not a transaction number) that uniquely identifies the originator to the ordering institution, or date and place of birth; (iv) beneficiary’s name; and (v) beneficiary account number where such an account is used to process the transaction (e.g., the VA wallet).
However, it is impossible to identify the sender and receiver of a transaction done through the five altcoins.
OKEx Korea notified its customers to withdraw any of the five delisted coins by Dec 10. However, the five altcoins delisted will be on OKEx.co.kr and not on the global OKEx platform.