OKex Korea Delists Privacy Coins Citing Financial Action Task Force Rules
The South Korean cryptocurrency exchange is delisting Dash, along with Monero, Zcash, Horizon, and Super Bitcoin on October 10th citing that they do not comply with Financial Action Task Force rules, joining several exchanges which have recently delisted privacy coins.News topic is a bit old (1 week old), but i myself forgot to post anything about this in here when the news actually
broke and its important information.
-qwiz
wow, this is really a news rekt. Privacy coins seem to be having large exchanges delist because of security.
I am not a Dash fan or any other privacy coins, but I think our market no longer wants to accept this coin. As more and more big investors appear, the market needs more transparency and rationality.
Dash just recently got listed on Coinbase, Coinbase Pro and will also be listed on Binance US. If you have read any of the posts in this thread, you should also know that plenty of other exchanges have absolutely no problem listing Dash.
Saying that "our market no longer wants to accept this coin" is therefore incorrect. Saying that "large exchanges delist because of security" is also incorrect, as the delisting is about exchanges trying to follow a new set of recommendations, issued by the FATF. A few exchanges seem to have a problem with following these FATF recommendations and decided to delist specific coins (not just Dash but 5 coins in total), to avoid dealing with this problem all together. So it is not about security, it is about how certain exchanges deal with FATF regulations by cutting out certain privacy coins.
So far the delisting of privacy coins concerns a few exchanges in the following countries :
Japan (Coincheck)
UK (Coinbase UK, CEX.io)
South Korea (OKEx Korea, Upbit)
And on state level : New York State (because of its Bitlicense, it is not very crypto-friendly to any cryptocurrency).
It is too soon to tell if this will be followed by other major exchanges. With regards to Dash specificly :
Dash can comply to the FATF travel rule to the same extend as Bitcoin. Both Bitcoin and Dash have open blockchains, both have public senders and receivers of which data can be gathered and both Bitcoin and Dash have a very low level of optional CoinJoin mixing activity on their network (Dash less then 1%, Bitcoin 4%).
Unlike Monero and Zcash and these other privacy-centric coins, Dash is far more focussed on providing instant, secure and low cost transactions and just offers optional privacy as one of its many services.
Dash is also a fork from Bitcoin and should be viewed as having the same legal status as Bitcoin. By delisting Dash you may as well delist Bitcoin. Dash is not a privacy-centric (only focussed on privacy) coin, but is by some exchanges unfairly treated as one.
I think most exchanges regnonice that Dash has the same legal status as Bitcoin and will therefore not delist it.
For those privacy-centric coins that shield both their sender and receiver (so the travel rule can not be complied with at any level), the situation could be different. They could face increased scrutiny from government agencies, who could put pressure on exchanges to delist these.
Here is summary of services and accomplishments that separate Dash from Monero, Zcash and other coins that are fully dedicated to providing only privacy :
* Dash has Instantsend set as default on most of its transactions. This means Dash can be received within a few seconds, protected against double spending and free of charge. This is Dash greatest achievement and a number of exchanges have thrown their support behind it.
* Dash developed ChainLocks which significantly improves it's security against 51% attacks. Dash network is therefore more secure then Bitcoin. Something that Coinbase Pro acknowledge by lowering their deposit conformations for Dash to just 2 confirmations. Any transaction that is ChainLocked is immediately secure against doublespending, can not be reversed and is assured of a place in a block. This means Coinbase Pro could have set number of deposit confirmations to just 1 and still have the same level of transaction security.
* Dash developed a multi-tier network by splitting the blockreward, thereby creating a miner tier and a full nodes (masternodes) tier and is working hard at providing a third tier of end-users & merchants that can directly connect to the Dash network through a decentralized API (new to the world).
* Dash has a decentralized governance and budget system in place, where masternodes can vote over budget proposals and the network itself can be polled about which direction to go.
* Dash is working towards changing itself into a decentralized platform, on which to run additional decentralized services. Dash plans to offer data-type driven contracts, of which metadata can be stored on the masternodes itself, through Dash Drive.
* Dash offers optional privacy on its transactions by having implemented CoinJoin into their core code (the same CoinJoin that's supported on Bitcoin's network through several Bitcoin wallets, the same CoinJoin that can actually be directly issued on the Bitcoin network without any third party wallets help). The usage of this optional privacy on the Dash network is very low (less then 1%, lower then Bitcoin)
