It is very uncommon to hear of a top cryptocurrency getting delisted by exchanges unless its BitcoinSV.
However, the cryptosphere experienced a recent shocker as both Monero (XMR), and Zcash (ZEC) got delisted from Dubai-based, exchange BitOasis. Delisting one anonymous coin doesn’t seem like a big problem, but delisting two privacy based coin at the same time has caused a ripple in the crypto waters.
BitOasis had given no prior information before delisting Monero and Zcash.
Asides from delisting the coins, the exchange is now asking users to explain the source of their funds and also provide details about the purpose of purchasing either of the cryptocurrencies, XMR and ZEC were purchased. The icing on the cake is that users will have to explain the reason for the external withdrawals of either currency.
Without a doubt, fulfilling those requirements dissolves the purpose of privacy based coin and does not go down well with users of these cryptocurrencies.
Monero (XMR) and Zcash (ZEC), Delisted for License?
While most exchanges allow most delisted coins to be exchanged or withdrawn for some weeks, BitOasis is clamping down on Monero and Zcash. Users of the two currencies have only until May 31 to transfer or convert their coins.
While there are lots of speculations as to the factor behind BitOasis’s reaction, all fingers point to regulation.
BitOasis had been trying to receive approval in the United Arab Emirates by gaining a special license. The exchange had received preliminary approval in April, and its recent actions of delisting XMR and ZEC seems like another measure to hasten the process of getting licensed.
The Future of Privacy Coins
It is quite challenging to determine the impact of this decision on Monero in terms of the trading volume both in the short and long-term.
For the time being though, many top cryptocurrency exchanges still offer trading in Monero (XMR) and ZCash (ZEC), meaning that the latest delisting could have little effect. Monero even comfortably ranks as the 13th top coin with Zcash only a further ten places away according to Coinmarketcap.
However, this is not the first time that an exchange delists privacy-and anonymity based cryptocurrencies. In 2018, Japan’s CoinCheck ended support for ZCash, Dash, and Monero, causing other exchanges to follow suit. Also, as mentioned earlier, some exchanges who are seeking regulatory compliance may opt not to list these coins.
For these reasons, the future of these privacy coins is quite unsure, with BitOasis’s move already reviving doubts in their respective communities. Will the privacy base status of these coins keep standing in their way of gaining traction? Time will tell!
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