OKX to Axe Multiple Privacy-Focused Crypto Tokens

OKX caves to regulatory pressure and delists several privacy-focused tokens, including Monero and Dash.

Coins getting dropped in OKX space.
Created by Kornelija Poderskytė from DailyCoin
  • OKX moves to delist several privacy-focused tokens.
  • The token delisting affects prominent privacy tokens such as Monero and Dash.
  • FATF guidelines warn that the use of privacy tokens is a red flag

As jurisdictions worldwide move to implement Financial Action Task Force (FATF) rules combatting money laundering and tax evasion, pressure against privacy coins enabling anonymous blockchain transactions continues mounting. OKX becomes the latest centralized exchange (CEX) to crack under FATF rule implementation, announcing on December 29 that it will delist several privacy-focused crypto tokens.

OKX Delists Privacy-Focused Tokens

According to an OKX statement released on December 29, the exchange will delist multiple tokens based on user feedback and failure to adhere to its delisting/hiding guidelines, including several privacy-focused tokens.

The first batch of delistings will see KSM, FLOW, JST, ANT, FSN, KZS, CAPO, and CVP trading pairs delisted on January 4, 2024. Followed by XMR, DASH, ZEC, and ZEN, delisted on January 5, 2024. Users are advised to cancel any limit orders before the relevant dates; otherwise, automated cancelations will occur. 

Although OKX announced this on December 29, deposits for FSN, ZKS, CAPO, CVP, XMR, DASH, ZEC, and ZEN were suspended on December 27. The exchange will end withdrawals for certain tokens by March 5, 2024, advising users to act before the deadline.

“Suspension on token withdrawal: We will suspend the withdrawal of the tokens mentioned above: FSN, ZKS, CAPO, CVP, XMR, DASH, ZEC, and ZEN, starting from 8:00 am UTC on March 5, 2024. Please manage your assets promptly,” advised the OKX notice.

Although OKX’s notice did not mention regulatory pressures to delist privacy-focused tokens, the underlying motivation likely stems from FATF policies that aim to limit financial crimes such as money laundering.

FATF Guidelines

The FATF serves as a global anti-money laundering authority, developing policies for implementation across its 39-country membership. The organization pivoted attention to cryptocurrency in recent years, including the publication of its “Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing” report in 2020.

The report highlighted anonymity and lack of transparency as key red flags authorities should monitor, particularly the use of privacy-focused tokens that enable blockchain anonymity, peer-to-peer exchange websites, and mixers to obfuscate the flow of funds. 

On the Flipside

  • CEXs are caught in the middle of balancing compliance requirements with “cypherpunk ideals.”
  • Banning encourages people to circumvent the rules and fuels underground markets.
  • Binance delisted several privacy tokens for certain EU countries in June.

Why This Matters

This OKX delisting round brings the simmering conflict between crypto privacy and increasing regulation to the fore. CEXs bowing to regulators risk alienating dedicated communities who value anonymity and censorship resistance. At the same time, there are no easy answers, as criminal use of privacy tokens cannot go unchallenged.

Learn more about OKX’s latest promotional crypto campaign here:
OKX Sets Wallet Rewards in ‘BTC Ecosystem Carnival’ Campaign

Find out India’s attempt to bring crypto exchanges in line here:
India’s Exchange URL Ban Meets Cool Response from Community

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.