Coincheck cryptocurrency exchange has suspended the trading of certain cryptocurrencies including Monero, Dash, and Zcash as it recovers from the notorious hack on its platform. Japan Times reported that the Exchange will stop handling the coins and others that feature a risky degree of anonymity.
The Risk of Anonymity in Cryptocurrencies
Transactions on the blockchains of Monero, Dash and Zcash are highly anonymous making it impossible to identify persons who receive funds on their platforms. Persons can use cryptocurrency to launder money without being traced as a result of anonymity in cryptocurrency transactions. This is most likely the reason Coincheck has decided to trade these coins.
How Coincheck will handle Anonymity
Financial Service Agency (FSA), requires Cryptocurrency Exchanges in Japan to register with it. Coincheck had been operating on a provisional basis while its application for a license was pending. Japan Times reports that the presence of anonymous customers on its platform is one of the reasons the exchange was not been fully approved.
It seems Coincheck will stop anonymous trading on its platform as it resumes operations after it suspended activities after the hack. Since last week when it resumed operations, the three coins in question were not available for trading. According to the reports, Coincheck will consider buying the coins at a fixed rate from customers who agree to sell. It has also suspended new registrations and may restrict services only to customers who are fully registered.
Recovery from The Coincheck NEM hack
Coincheck suffered the worst cryptocurrency heist in history losing about $550 million worth of NEM (XEM) cryptocurrency. Bitcoin.com reports that Coincheck has refunded 260,000 customers who lost NEM to the tune of ¥46.6 billion or $440 million. This comes after the exchange promised to compensate victims and gradually resume operations.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.
