Coincheck, the Japanese exchange that lost ~$550 million worth of NEM to hackers, will stop dealing with Monero, Dash and Zcash. The trading platform has recognized the risk posed by these cryptocurrencies which provide high levels of anonymity. Half of the NEM coins stolen in the hack may have been converted already on the darknet, a cybersecurity expert claims.
Anonymity Postpones Coincheck’s Registration
The Japanese exchange Coincheck, which is trying to recover from one of the worst hacks in crypto history, is expected to stop handling three cryptocurrencies providing high levels of anonymity, the Japan Times reported. Coincheck now recognizes the high risk posed by these coins when used in money-laundering transactions, unnamed sources said. The cryptos are Monero (XMR), Zcash (ZEC), and Dash (DASH).
It is virtually impossible to identify the recipients of funds denominated in these cryptocurrencies on their blockchains. That’s probably the main reason for Coincheck’s decision. The anonymity facilitates their possible use in money laundering, which is not the case with other cryptos, like bitcoin. The exchange is considering buying the coins at a fixed rate from customers who agree to sell. It will accept transfers from Coincheck accounts whose owners have been verified.
Coincheck’s application for new registration under the revised payment services law is still pending partly because the exchange works with anonymous customers. It was submitted with the Financial Services Agency (FSA) back in September, before the hack, and the screening is taking longer than expected, the Japan Times notes. Trading was suspended right after the attack in January and when it resumed last Monday, the three coins in question were not among the available options…