Crypto exchange Huobi has ceased topping-up service for seven kinds of privacy-focused tokens on its exchange as it prepares to delist the tokens on Sept. 19, citing regulatory concerns.
See related article: Privacy protocol Monero completes upgrade to make transactions more private
Fast facts
- Privacy tokens are cryptocurrencies that maintain anonymity by hiding the source of crypto in their network — it’s difficult to determine who sent what to whom. While popular with some crypto enthusiasts, those cryptocurrencies have also been criticized for providing possible cover for criminal transactions.
- Monero is a kind of privacy token with the slogan “private, decentralized cryptocurrency that keeps your finances confidential and secure” on its homepage. It has the highest market cap among the seven privacy tokens to be delisted, with a market cap of nearly $3 billion, according to CoinMarketCap.
- Huobi said in the announcement that they have stopped trading services for these tokens since Sept. 6.
- China-originated Huobi is seeking to enter more countries globally after China’s crypto ban last year. But it has encountered some setbacks from local regulators in Malaysia, Thailand and Singapore due to local compliance requirements. Huobi is also reportedly seeking to sell a majority of its shares.
- Regulators around the world are tightening up on the anonymity of cryptocurrencies. One of the latest events came this August when the U.S. Treasury Department banned U.S. customers from using Tornado Cash, a protocol that can conceal the transaction traces on Ethereum.
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