Home CryptocurrencyBitcoin Huobi Removes Monero and Other Privacy Coins Citing Regulatory Pressures

Huobi Removes Monero and Other Privacy Coins Citing Regulatory Pressures

by SuperiorInvest

Cryptocurrency exchange Huobi is removing seven different privacy coins from its platform as regulatory pressure on anonymity-enhanced currencies (AEC) intensifies.

The exchange has announced that it has discontinued trading service for a number of privacy tokens including Dash (DSH), Decred (DCR), Firo (FIRO), Monero (XMR), Verge (XVG), Zcash (ZEC), and Horizen (ZEN). ).

These tokens will begin to be removed on September 19, while escrow services were terminated on Monday in connection with the announcement. Users have been encouraged to cancel open orders for the coins to protect privacy, while the exchange will cancel all existing orders at the time of removal and credit users’ spot accounts.

Related: US expansion one step closer for Huobi after securing FinCEN license

Huobi noted that it has worked to meet compliance policies in more than 100 countries where its services are available. The announcement cited efforts to comply with the latest financial regulations as well as the company’s token management rules.

Article 17(16) of its rules list deals with “concealment or suspension of trading”, which gives Huobi Global the right to conceal or suspend trading of tokens under the following circumstances. Clause 16 relates in particular to privacy coins:

“The token is a privacy token, it does not support offline signatures or its node source codes are not open source.”

The exchange also confirmed that it has ended trading in its futures, margin, ETP, OTC and trading boots. Cointelegraph reached out to Huobi Global to find out what is driving the move and whether regulators in specific countries have required the removal of the coins in question to protect privacy.

Huobi tracks movement to the United States market after receiving a Money Services Business (MSB) license from the US Financial Crimes Enforcement Network (FinCEN) in July 2022.

As previously reported by Cointelegraph, privacy tokens have come under intense scrutiny in various jurisdictions around the world, with Japanese, South Korean and Australian regulators banning their use in recent years.

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