Cryptocurrency exchange BitBay to end support for Monero

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On 25th November 2019 cryptocurrency exchange BitBay made it official that it is ending support for privacy-focused coin Monero in a bid to curb money laundering and illicit trading activities on its platform.

Come 19th February 2020 and BitBay will terminate its trading support for Monero (XMR) and entirely cease transaction support by cancelling buy and sell XMR orders before the end of any transaction. Moreover, from 29th November 2019, it will not accept XMR deposits and put XMR withdrawals on hold from 29th November 2019 up to 5th December 2019 in view of forthcoming Monero blockchain fork.

Cryptocurrency exchange BitBay concerned about KYC and AML compliance

Similar to Monero’s previous delistings that took place in September, such as OKEx Korea and Upbit, BitBay quotes the same reasons for its decision of removal. The website states that the anonymity associated with Monero, or any other cryptocurrency with a similar feature is what makes it challenging for exchanges to accept it. Its ability to selectively employ privacy features among transactions makes it an easy target for money embezzling activities and illicit transactions from external sources.

BitBay also stated that being a regulated exchange, it is bound to follow specific market standards and comply with regulations since it is the only way to build a network of trusted clients. Legal compliance, enhanced convenience and robust security features of the exchange help the firm to develop healthy relations with its banking partners and payment facilitators. By supporting anonymity-oriented coins, it puts those relations at risk.

Meanwhile, the overall climate for privacy focused coins such as Monero, Zcash or Dash has been unfriendly and hostile as the regulators have started taking notice of its increasing use in criminal activities. Recently, the German Federal Ministry of Finance warned people of privacy-focused tokens and their risks associated with illegal activities.

Featured Image by Pixabay

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