Japanese Crypto Exchange Coincheck Delists Four Coins

The recently hacked exchange will remove all trading pairs for Augur (REP), Monero (XMR), Zcash (ZEC) and Dash (DASH)

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21 May • 2 min
In News

Japanese cryptocurrency exchange Coincheck announced on Friday it will delist all trading pairs for Augur (REP), as well as privacy-focused coins Monero (XMR), Zcash (ZEC), and Dash (DASH).

Crypto traders must withdraw their XMR, DASH, ZEC and REP holdings before June 18. Coins remaining on the platform after that date will be sold at the market price, converted to Japanese Yen (JPY) and credited to the customer, Coincheck said in a press release.

The company explained that it came to the decision to cease support for these cryptocurrencies following a “drastic review” of its internal control system and as part of a new “management strategy that thoroughly protects customers.” Coincheck concluded that it is “not appropriate to deal with currencies that are of little concern,” as they present risks to the firm’s ability to maintain compliance with the Counter-Terrorist Financing (CFT) and Anti-Money Laundering (AML) measures recently issued by Japan’s financial regulator, the Financial Services Agency (FSA).

The FSA has been especially active in regulating crypto exchanges in the aftermath of the major January hack when USD 534 million worth of NEM tokens were stolen from Coincheck’s platform. As part of its efforts, the FSA has stated that local, officially-registered exchanges will face restrictions on the trading of privacy-focused coins, since they are difficult to trace.

Coincheck, whose FSA license is still pending, did not explain its decision to delist REP too, as the token does not classify as anonymity-focused. However, as Augur’s platform deals with prediction markets, the association with unlicensed gambling may be the reason Coincheck is dropping the token.

Monex Group, which last month bought Coincheck for JPY 3.6 billion (USD 33.6 million), is determined to bring the exchange back to life. Monex CEO Oki Matsumoto told Bloomberg in an interview on Friday that Coincheck will receive an FSA license in June. He further revealed plans to expand the exchange’s operations to US and Europe as they are more advanced than Japan in terms of regulatory clarity.