Another cryptocurrency exchange, this time in Eastern Europe, is delisting the privacy-focused Monero (XMR) coin over money laundering concerns.
On Monday, Estonia-based BitBay announced that it will stop accepting XMR deposits as of 29 November, and that the digital asset will no longer be tradeable on its platform starting 19 February, 2020.
The exchange further stated that XMR withdrawals will be temporarily suspended between 29 November and 5 December, due to an upcoming Monero blockchain fork, and that all users must withdraw their remaining XMR by 20 May, 2020.
Similarly to other exchanges, BitBay said that removing Monero was due to its privacy features, which allow it to jumble up small groups of transactions to obfuscate individuals’ identities.
The company explained that, as a regulated exchange, it has to follow strict market standards and regulations when it comes to consumer protection and reporting practices.
BitBay’s announcement stated:
“The decision was made to block the possibility of money laundering and inflow from external networks. Monero (and other cryptocurrencies with this specification) has been already delisted on other fiat-crypto exchanges for the same reason. As a licenced exchange, BitBay has to follow the market standards. Compliance with market standards and regulations allows us to provide our clients with legal security and convenience of using the exchange, with the participation of a friendly banking system and the availability of payment operators.”
Other trading platforms have also been delisting Monero, and similar privacy-focused tokens. Last month, major cryptocurrency exchange OKEx Korea dropped a number of privacy-oriented coins, such as Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC).
A few days later, South Korean cryptocurrency exchange UPbit also followed suit and dropped its support for six such privacy-focused tokens, citing the requirements listed by the Financial Action Task Force (FATF) guidance as the main reason.