OKX to Delist Zcash, Others, as Privacy Token Liquidity Drops

As the SEC’s crackdown on cryptocurrency companies continues, pressure has been mounted on most privacy tokens. The current adverse event has compelled major exchanges to delist the tokens simultaneously.

OKX topped the list of exchanges to take such a move when it delisted Dash, Monero, and ZCash, which led to a decline in the token’s liquidity. This was after the prices had gone to an all-time low. To improve users’ anonymity and secrecy, privacy tokens have encountered increasing regulatory difficulties worldwide.

The regulatory scrutiny around the cryptocurrency business has grown as it has matured, forcing exchanges to review and modify their asset listings to comply with changing legal requirements. Data obtained from Block’s Data Dashboard says that the OKX exchange recorded $60.27 billion in trading volumes last month, representing more than 7.2% in market volume.

OKX Reaffirms Commitment to Giving its Users the Best 

The delisting will go into effect in 2024, representing a proactive move by OKX to handle any regulatory obstacles related to cryptocurrencies with a privacy focus. Delisting these coins, OKX says, is a demonstration of its dedication to meeting regulatory requirements and guaranteeing adherence to changing legal requirements.

Data released from Kaiko said that the liquidity of privacy tokens dropped to $5 million, an all-time low, considering the 1% market measurement. Kaiko confirmed that the vast decline resulted from the delisting, which affected many privacy tokens.

Explaining how they came about the data, Kaiko said it measured the cumulative value of the coins’ buy and sell orders on the significant exchanges, using a 1% deviation from the present price. 

Huobi And Binance Once Took the Path of OKX 

Speaking on the development, Helen Partz from Cointelegraph says that prioritizing security and regulatory compliance has always been a top priority for OKX, which has, on many occasions, promised to build its user confidence.

However, one cryptocurrency exchange, Huobi, had previously announced its plans to go the way of OKX when it delisted seven privacy tokens in September 2022. The exchange concluded that the affected tokens failed to comply with the management policy.

In May 2023, Binance delisted all its privacy tokens in France and Italy, only to retract and reverse the decision sometime in June 2023. OKX had on December 27th, stopped all deposits of CVP, FSN, XMR, ZEN, and four other tokens. Reports stated that the withdrawal of the listed tokens will start March 5.

Analysis Says Motivated by its Members Feedback., Gives Reasons

The analytical report obtained from the Daily Coin platform says that in December 2023, OKX publicly announced its intentions to remove major privacy tokens. The exchange explained that its decision is motivated by its members’ feedback.

It also added that the failure of the affected tokens to comply with the guidelines as stipulated in the Financial Action Task Force (FATF) also contributed to the delisting of those affected tokens. The FAFT guidelines provided an avenue to fight terrorist financing and money laundering through sharing data of the beneficiary and the originator on the supposed cryptocurrency transactions.

Meanwhile, the OKX exchange has once again proved its relevance as one of the top cryptocurrency exchanges in the world, with a daily cryptocurrency transaction of over $3 billion. As of press time, OKX has listed 482 cryptocurrency trading pairs, which also include XMR/BTC, XMR/BNB, XMR/USDT, and its counterparts.