Crypto enthusiasts may remember the days when Asian crypto exchanges would delist anonymity and privacy coins overnight. Although it has been quiet on that front, Huobi Global has rekindled that concept. The exchange will remove seven privacy-oriented projects on September 19, 2022.
An Unexpected Huobi Global Delisting
It is understandable when Huobi delists privacy coins in its native country of operation. Unlike other parts of the world, Asia does not love currencies that provide privacy or anonymity. There is active regulation to prevent such currencies from gaining traction or using them as payment options. However, when Huobi Global – the international version of the exchange – takes similar action, things become a bit more complex.
The exchange issued an official statement regarding the matter, citing “compliance policies of every country” as a key reason. However, the statement also refers to “Article 17 (16)” of its Terms of Service. That article pertains to privacy tokens, assets not supporting offline signatures, or closed-source node source codes. As such, the seven privacy coins to be removed violate that article, forcing the company to take appropriate action.
On September 19, 2022, Huobi Global users will no longer have access to Horizen, Monero, Firo, Zcash, Decred, Dash, and Verge. Some may argue Dash pivoted away from a privacy-focus, although the network still provides opt-in solutions. The other currencies have limited traction, except Monero and Zcash. Monero is a commonly-used currency on the deep web and other platforms due to the anonymity it provides.
As is courtesy during a delisting, users will no longer be able to deposit or withdraw these assets past the deadline. In addition, traders who have margin positions on these currencies will need to close their position as soon as possible. It is unclear if users can recover these currencies from Huobi Global past the deadline, although there is usually a “grace period” of sorts.
Privacy Coins Aren’t Going Anywhere
While Huobi Global will delist these privacy coins, their appeal will not diminish whatsoever. Consumers want more privacy when conducting online transactions. Unfortunately, they cannot access this crucial benefit in traditional finance, making cryptocurrency a highly appealing alternative. At the same time, one must wonder what the future holds for these currencies when centralized platforms continue to pull support.
Regulations and policymakers will likely continue to scrutinize privacy coins for some time. However, there are many decentralized trading solutions – including LocalMonero – to buy and sell these currencies. Centralized exchanges will always be in the crosshairs of new regulations, but the peer-to-peer market will provide the necessary resilience and alternatives to ensure privacy coins continue to thrive.
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