Thoughts are simple. OKEx Korea know everyone on their exchange, since they KYCed themself. So they know who deposited every coin on the exchange as who withdraw coins from that exchange. That is what FATF policy is all about. In FATF policy there is no reason for delisting any coin. There are just reasons for them to focus more in KYCing their customers.
It seems true but why okex has said like this
In its notice, OKEX Korea said it will delist cryptocurrencies that “violate laws or regulations [and] policies of government agencies and major agencies.”
Specifically, in this case, it cited the “travel rule” recommendation to national regulators from the Financial Action Task Force (FATF) as the reason for pulling the five coins.
https://www.coindesk.com/okex-korea-drops-5-privacy-coins-citing-fatf-rulesBut this will be only implemented in the okex's Korea based exchange but another platform still remains the same to allow the trade for these privacy coins.
I dont understand what is unclear? There is nothing in FATF policy that prevent them to have Monero listed. Nothing. FATF policy demand they know who they sell coins or get coins from. If they do KYC then they do know. Why they posted that is mystery to me. I have no ideas. They should tell the truth what is teh reason.
My speculation is that since tehre was a lot of hacks in South Korea. A lot exchanges lost founds in last years and since they cant trace those taht was witdhrawn in Monero they did this. Instead to raise security to prevent hacks or internal stealings they pulled most simple thing that will not solve anything on the long term. It will only escalate problems since transparent ledger coins are easier targets then coins that have opaque ledger and hackers dont even know who holds them.
I think the KYC rules apply on customeraccount level and the FATF travel rule applies on transaction level. With an open
blockchain like Bitcoin, the exchange can apply this travel rule because the senders and receivers can be viewed
publicly on-chain, which means sender and receiver information can be gathered and sent to this global international monitoring system
and Bitcoin is therefore in compliance with this travel rule.
Lets forget for a moment that even Bitcoin has CoinJoin activity on its network (several Bitcoin wallets support CoinJoin and there
is some mixing / privacy enhancement happening on a very low and very centralized level) and focus on Monero.
Monero has a closed blockchain, where senders and receivers are not public knowledge (they are purposely hidden on-chain),
which means information on sender and receiver can therefore not be gathered and sent to some global international monitoring system.
This means there is no compliance with the travel rule.
Most major exchanges and custodial wallet providers seem to choose TRISA these days (an open-source solution) over delisting
specific cryptocurrencies that can provide private transactions. Maybe OKEx Korea will also one day implement TRISA
(its a rather recent open-source solution, only published somewhere this month) and then re-introduce these delisted crypto assets.
Link :
https://www.businesswire.com/news/home/20190910005635/en/CipherTrace-Unveils-Trustworthy-Open-Source-Solution-FATFNote : people should not confuse OKEx Korea, with their more international focussed and larger exchange OKEx. Only OKEx Korea
is delisting these 5 cryptocurrencies.
Its also questionable why they include Dash to this delisting as Dash also has an open blockchain like Bitcoin, its senders and receivers
can be viewed on-chain and can just like Bitcoin be gathered and and sent to this global monitoring system for 99% of its transactions
(just like Bitcoin there is a very low level of optional privacy enhancement occurring on the Dash network). Dash is even a fork of Bitcoin and has a high level of compatability with Bitcoin code-wise. Its makes very little sense to include Dash, unless the South Korean government was more focussed on label-branded "privacy-centric" cryptocurrencies (only focussing on privacy) and thought that Dash belong to those (it does not).
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