Two Australian exchanges CoinSpot and Coinjar have begun to delist a number of privacy coins including Monero and Bytecoin
On August 24, YouTuber Alex Saunders tweeted a screenshot of the announcement from the Australian exchange Coinspot. And it looks like this announcement involves Coinspot that has begun deleting some privacy coins, including Monero (XMR) and Bytecoin (BCN).
Australian exchanges CoinSpot and Coinjar delist privacy coins amid Chainalysis integration
This announcement seems to suggest that some private coins will be delisted by August 31:
Like I always say, important technology for #crypto infrastructure, but a bad investment as exchanges will continue to delist” ?️?? #PrivacyCoins #Delisting pic.twitter.com/muOC84Z7xP
— Alex Saunders ???? (@AlexSaundersAU) August 24, 2020
Another Twitter user alleges that CoinSpot is not the only one planning to delete privacy coins, saying that Australian exchange Swiftx is also planning to do the same.
On the same day, Chainalysis announced that it is working with CoinSpot and Coinjar to improve compliance standards. It seems neither of the exchanges has confirmed the impending problem. After contacting CoinSpot customer support, the question of whether Monero would be unlisted was raised.
A representative from the company responded, confirming the news, and hinted at the reason behind the decision:
“Since we began operating in 2013, we have faced many instances in which pressure from external institutions have attempted to stifle or restrict our business. In each of these instances, we have always worked hard to coordinate the best possible outcome for our members. We do not take these decisions lightly as we do believe that cryptocurrency trading services should be as accessible as possible to all Australians. ”
The representative guarantees that there will be no forced asset transactions and that users will still be able to withdraw their funds.
One of the currencies initially marked by CoinSpot for deletion was Komodo’s KMD. However, Komodo believes this is a bug as KMD’s privacy feature has long been disabled according to the project’s CTO Kadan Stadelmann:
“Komodo does not have the privacy feature enabled for a long time. We have a legal opinion backing this claim. So although the Komodo Platform does offer privacy tech, the Komodo Token (KMD) itself does not offer privacy technology.”
Stadelman confirmed that the issue was resolved and that KMD will not be removed from CoinSpot. AtomicDEX, a decentralized exchange built on Komodo’s technology, currently lists Zcash, but not Monero.
The large exchanges have no intention of endangering their business to provide these assets to users.
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