Huobi citing regulatory pressure to cancel Monero and other privacy coins

Cryptocurrency exchange Huobi is delisting seven different privacy coins from its platform as it ramps up regulatory pressure on anonymous cryptocurrencies (AECs).

The exchange has announced the termination of trading services for several privacy tokens, including Dash (DSH), Decred (DCR), Firo (FIRO), Monero (XMR), Verge (XVG), Zcash (ZEC) and Horizen (ZEN). ).

These tokens will begin to be redeemed on September 19th, while bond services will be terminated on September 12th with a letter of notification. Users were asked to cancel open orders for Privacy Coins, the exchange will cancel any existing orders when it goes offline and credit users’ accounts.

Related: U.S. expansion for Huobi a step closer after getting FinCEN approval

Huobi has made efforts to meet the compliance policies of more than 100 countries where its services are available. The announcement mentioned efforts to comply with the latest financial regulations and the company’s token management regulations.

Section 17(16) of the Rules lists ‘trade concealment or suspension’, which gives Hubi Global the right to conceal or suspend token trading under the following circumstances: Article 16 is specifically directed at privacy coins:

“The token is a privacy token, it does not support offline signatures or cross-source codes are not open source.”

The exchange has confirmed that it has suspended trading services on futures, margin, ETP, OTC and trading bot services. Cointelegraph caught up with Huobi Global to find out the driving force behind the move and the need for regulators in certain countries to scrap their respective privacy coins.

As previously reported by Cointelegraph, privacy tokens are under intense scrutiny in various jurisdictions around the world, with regulators in Japan, South Korea, and Australia banning their use in recent years.

Huobi is looking to enter the United States market in July 2022 after receiving a Financial Services Business (MSB) license from the US Financial Crimes Enforcement Network (FinCEN).