Upbit to Withdraw Support for Six Cryptos Due to the FATF Standards

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In compliance with the newly-released FATF guidelines

On September 20, South Korea’s Upbit released a notice stating that it will delist six cryptocurrencies from its crypto exchange platform. Trading support for DASH (Dash), XMR (Monero), TUBE (BitTube), ZEC (ZCash), XHV (Haven) and PIVX will end on September 30. 

In June, the Financial Action Task Force (FATF) released new international guidance that aims to promote global policies that would lessen the risks of financial threats. Particular amendments apply to crypto-assets. There is a detailed explanation about why countries and associated parties must comply with the recommendations as well.

Notably, the FATF is founded on the initiative of the G7 nations in 1989. Since then, this intergovernmental organization has been monitoring the global financial system and developing comprehensive policies to combat terrorist financing, money laundering, and other kinds of illicit activities. While there is no written agreement that countries must comply with the organization’s recommendations, nations that take the policies for granted end up being blacklisted. 

As per the official notice, Upbit will no longer accept deposits in the soon-to-be delisted cryptocurrencies and privacy coins. Order requests placed before September 30 would also be cancelled. According to the exchange, this decision reflects their intent to help block the possibility of illegal financial activities as well as to block the influx from external networks. 

This notice came hot on the heels of OKEx’s announcement last week. The OKEx subsidiary in South Korea withdrew its trading support for five altcoins due to the same reason. The crypto exchange is wrapping up trading support for Dash, Horizen, Zcash, Super Bitcoin and Monero which would end on October 10. 

The FATF recommends business entities to identify the involved parties in a transaction that involves more than $1000.  Theoretically, more than 200 nations are expected to implement the new FATF international standards by June 2020. However, most decentralized Blockchains claim that complying with the recommendation is physically impossible for them. 

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