The Coincheck Japanese cryptocurrency exchange will remove cryptocurrencies centered on privacy monero (XMR), Zcash (ZEC) and Dash (DASH) next month from the list of trading pairs.
The Tokyo-based stock exchange, which was acquired by the brokerage firm Monex after the platform lost US $ 530 million in NEM tokens (XEM) in January.
On Friday, it announced that it will no longer facilitate the negotiation of these cryptocurrencies, which provide its users with the ability to perform transactions that are less traceable than those made with Bitcoin and most other blockchain-based currencies.
Coincheck said it made the decision to suspend support for these cryptocurrencies after a "drastic revision" of its internal control system and as part of a new "management strategy that protects customers."
It is not "appropriate," the company said to deal with these currencies, as they present risks to the company's ability to maintain compliance with anti-money laundering (AML) regulations.
As reported by CCN, it is rumored that the Financial Services Agency (FSA) of Japan, the regulatory agency that grants licenses to the cryptocurrency trading platforms to operate in the country, is pushing the exchanges so that the privacy currencies are eliminated.
Coincheck, whose FSA license was pending at the time of the change of registrations in January, was acquired by Monex, in part because it was said that its former owners could not comply with the commercial improvement order that the FSA issued after the theft.
Consequently, the decision to eliminate these privacy currencies could be interpreted as an attempt by the new administration to put the platform back in the good hands of the FSA.
The Augur reputation token (REP), which will be the native asset of the startup prediction market, will also be removed from the list, perhaps due to its perceived association with unlicensed gaming.
Operators have until June 18 to withdraw their XRM, DASH, ZEC and REP. The coins that are not withdrawn will be sold at market price and converted into JPY, which will then be credited to the clients' accounts.