Coincheck Drops Support For Monero, Dash, and Zcash

Coincheck, the crypto-exchange based in Tokyo which suffered a loss of over $550 million in NEM from a hack back in January, has declared that they will stop dealing with Monero, Dash, and Zcash. The trading platform sights the high level of anonymity provided by these digital currencies as a high risk, as it can be used in money laundering transactions.

It is true that tracking down the recipients of funds transferred through these cryptocurrencies is virtually impossible. For example, let’s consider the situation with the $550 million worth of NEM tokens stolen during the Coincheck hack. Since then police has been working with volunteer ethical hackers to comprehend the culprits, but all efforts have been to no avail.

There was initially hope as all the NEM coins are traceable and so the hackers won’t be able to launder the assets. However, as it turns out, nearly $80 million of the stolen NEM had been laundered, most presumably through the darknet.

The security issue can’t solely be blamed on Coincheck either as most all crypto exchanges have their share of experience with hackers and cryptocurrency theft. And so, as a security measure, it is wise to stop dealing with digital currencies which boast such high anonymity.

As of now, the exchange is planning to buy all the mentioned coins at a fixed rate from the customers who are willing to sell them. The platform is also accepting transfers from Coincheck accounts, but the owner needs to be verified to do so.

Coincheck had also previously applied for new registration under the revised payment services law back in September 2017, months before the hack took place. Their application is reportedly still pending because of the platforms dealings with anonymous customers. However, it is worth noting that after the trading platform was suspended back in January following the hack, it reopened this Monday (March 19) and the three anonymous digital currencies – Monero, Dash, and Zcash has been unlisted from available options.

Please share it if you enjoy the read!

Leave a Reply

Your email address will not be published. Required fields are marked *