OKX to Delist Privacy-Focused Cryptocurrencies on January 5
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OKX, the sixth-largest cryptocurrency exchange by trading volumes, has announced plans to delist multiple privacy-focused cryptocurrencies such as Dash, Monero, and ZCash.
OKX will remove these crypto tokens from its trading platform on January 5. The decision has triggered a drop in value for the privacy tokens. Delisting on major exchanges is often seen as bearish as it might affect the token’s liquidity and, therefore, its long-term price performance.
OKX to Delist Privacy Coins
According to OKX, the decision to delist the 20 trading pairs was influenced by user feedback. The exchange’s guidelines state that the trading pairs fail to meet the listing criteria. OKX failed to mention the criteria used to delist these privacy coins.
OKX’s announcement further said, ” To maintain a robust spot trading environment, we constantly monitor the performance of all listed trading pairs and review their listing qualifications on a regular basis.”
Privacy coins have attracted much regulatory attention because of how they operate. These coins are created to preserve the anonymity of users by hiding transaction details. These privacy coins come with several unique traits, such as boosting privacy in financial activities.
As OKX readies for delisting these tokens, it has paused user deposits for some of these tokens. It has also announced that withdrawals will be suspended from March 5, 2024.
Concerns around Privacy Coins
As aforementioned, privacy coins tend to create friction with regulators because of their obscure nature. OKX is not the first exchange to delist these coins from its platform. In September last year, Huobi announced delisting of seven privacy coins.
In May 2023, Binance announced plans to delist all privacy tokens in countries such as France and Italy. However, it reversed the decision and continued supporting these tokens.
OKX is among the leading cryptocurrency exchanges with at least $3 billion daily worth of crypto trading volume. The exchange supports over 400 trading pairs. By delisting privacy coins, OKX hints at a possible regulatory change around these coins.
The OKX exchange has been leaning towards achieving compliance, having posted its recent proof of reserves report with wallets holding $12.5 billion of primary assets. The numbers indicate that the company can meet customer withdrawals.
The proof-of-reserves report also shows that OKX has had a reserve ratio of over 100% for these assets over the past 12 months.
