Connect with us

News

Bitbay withdraws support for Monero to tackle money laundering

Namrata Shukla

Published

on

Source: Pixabay

Europe-based Bitbay has announced the termination of support for Monero [XMR]. This decision will be implemented next year on 19 February and XMR orders [buy/sell] requested before the end of the transactions will be canceled. According to the statement, the exchange’s decision is fueled by the privacy-based nature of the digital asset.

The exchange explained,

“Monero (XMR) can selectively utilize anonymity features among projects. This feature of XMR is a subject to end of transaction support. The decision was made to block the possibility of money laundering and inflow from external networks.”

Many exchanges have already de-listed Monero and other cryptocurrencies with similar features as a step towards complying with the market standards. The exchange mentioned that it will stop deposits from 29 November 2019, with holders being asked to withdraw their XMR by 20 May 2020, at the latest.

“In addition, due to the XMR network fork taking place on 30.11.2019, XMR withdrawals will be blocked from 29.11.2019 to around 5.12.2019.”

Previously, other prominent exchanges like OKEx Korea had delisted Monero [XMR], along with other cryptos like Dash, Zcash [ZEC], Horizen [ZEN], and Super Bitcoin [SBTC]. The exchange’s decision to delist these cryptos was taken in compliance with the ‘Travel Rule’ recommended by the Financial Action Task Force [FATF]. The rule demanded businesses to identify the parties involved in sending and receiving funds if the transaction value surpasses $1,000.

Upbit too had withdrawn support for Monero [XMR], Dash, Zcash [ZEC], Haven [XHV], BitTube [TUBE], and PIVX. It highlighted the reason being the possibility of money laundering and inflow from external networks. According to reports, most countries might implement the rules laid out by FATF by June 2020. However, it will be difficult for many decentralized blockchains.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.