Business 21 May 2018

Erik Gibbs

Coincheck puts 4 questionable altcoins on the chopping block

Back in March, CoinGeek reported on the rumored removal of four cryptocurrencies from the popular Japanese Coincheck exchange. The four have a greater focus on privacy than other coins, making them questionable by the exchange’s standards. In an announcement over the weekend, Coincheck confirmed that all four are facing the chopping block, effective in June.

Dash, Zcash, Monero and Augur will all be taken off the exchange as of June 18. The move comes following increased security measures introduced by Japan’s Financial Services Agency (FSA) in the wake of the hack of the exchange in January. The altcoins will be removed as the exchange seeks compliance of anti-money laundering (AML) and counter-terrorist laws. Until the cutoff date, Coincheck investors with have their assets sold at market price and converted to Japanese yen.

The FSA created a new blueprint for cryptocurrency exchanges after the hack, designed to ensure the exchanges are operating under strict guidelines and to offer greater consumer protection. Coincheck lost around $532 million in the altcoin NEM as a result of the attack. Coincheck announced in March that it would repay all investors for the amount that was stolen.

As part of its crackdown on the cryptocurrency industry, the FSA placed restrictions on the trading of cryptocurrencies that offer a greater amount of anonymity. The decision was made since the coins’ anonymity makes it difficult to trace the digital currency.

As part of the regulation makeover, the FSA now requires all exchanges to be subjected to an on-site inspection before launching services. The inspection is conducted to ensure that the exchange adheres to five different points:  digital currency is not stored in Internet-connected computers, strong AML oversight by the exchange, separation of exchange assets from client assets, a separation of shareholders from management and no transactions involving coins not approved by the FSA.

Coincheck announced last week that it was looking to expand into the United States, stating that both Europe and the U.S. are more accepting of crypto in regards to regulatory clarity. It further identified the growing institutional investment sector in the US and Europe as being a factor for its decision.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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