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One of the main trends following the growth and the maturing of the digital currency industry has been the booting of so-called privacy coins from the exchanges. As more regulations come into place in order to prevent crime and protect the investors, some currencies priding themselves on providing their users with anonymity have been targeted and removed from some of the leading marketplaces. Authorities have become increasingly concerned with the fact that the use of these coins can make the details of transactions, such as the identity of the sender, recipient, as well as the transaction amount, untraceable.
Last Friday, Bittrex, the US-based global digital currency exchange, has announced the removal of the markets for Monero (XMR), Zcash (ZEC), and Dash (DASH) cryptocurrencies. The markets for these coins will be eliminated from the Bittrex on January 15th, at 23:00 UTC.
— Bittrex (@BittrexExchange) January 1, 2021
All users will have to perform any trades with these currencies before that time. Bittrex also added that it will allow a 30 days window for users to withdraw the delisted tokens, although that period may be shortened in some cases.
Bittrex provided no information on the reasons for this particular action, although it follows the activities of plenty of other exchanges across the globe. Privacy coins are being delisted all over in an effort to increase exchanges compliance with Know Your Customer (KYC) and AML (ANti-Money Laundering) regulations and worldwide efforts to fight against the financing of terrorism.
Last year, these three coins have been already removed for the Liquid Exchange as it was the only way the exchange could have applied for the payment services license in Singapore. At the time, Liquid Exchange issued a statement saying that some of the tokens may be relisted in the future should they come to an agreement with the regulators.
The US Congress has even received a direct demand from the US Secret Service to create the means for limiting the use of crypto coins that focus on its users’ privacy.
So far, we haven’t heard much from the organizations behind these currencies regarding the latest developments. Dash was the only one that provided some response, stating in a tweet that their currency is probably unfairly named as a privacy coin, claiming that technically the privacy functionality of the Dash is not much different than the Bitcoin.
Last November, CFO at Dash Core Group, Glenn Austin, noted that the Dash is a fork of Bitcoin operating under the same transaction rules as the Bitcoin network and incorporating most Bitcoin backports.
He claims that the Dash coin provides some basic privacy for their users, ensuring that others on the network or vendors can’t know how much crypto they hold, but doesn’t protect them from law enforcement.
The delisting has affected the performance of all three coins, causing their shares to fall. The XMR now stands at $133.75 – a 14.44% drop, ZEC is down 12.28% and is currently at $55.76.