Why Do Some Centralized Exchanges ‘Delist’ Privacy Coins?
Centralized exchanges delist privacy coins primarily due to regulatory pressure. Governments and financial regulators, particularly those focused on Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT), view privacy coins as high-risk.
Exchanges must comply with strict 'Know Your Customer' (KYC) and transaction monitoring rules. The anonymity features of privacy coins make compliance with these rules extremely difficult, leading to delisting.
Glossar
Anonymity Features
Privacy ⎊ These intrinsic design elements, often involving cryptographic mixing or multi-party computation, aim to obscure transaction metadata from general public inspection on permissionless ledgers.
Privacy
Anonymity ⎊ Privacy within cryptocurrency and derivatives contexts centers on obscuring the link between transaction origins and identifiable entities, a critical distinction from traditional finance’s reliance on Know Your Customer (KYC) protocols.
Centralized Exchanges
Exchange ⎊ Centralized exchanges (CEXs) represent a critical infrastructure within cryptocurrency markets, facilitating order matching and settlement for a diverse range of digital assets, including options and derivatives.
Privacy Coins
Asset ⎊ Privacy Coins are cryptocurrencies fundamentally designed with built-in features intended to obscure transaction details, such as amounts, senders, and receivers, from the public ledger, thereby prioritizing transactional confidentiality over radical transparency.