After removing the Zcash Privacy Focused Asset (ZEC) from the regulatory compliance list The Japanese stock exchange Liquid is not against adding them back to the list in the futureawaiting regulatory clarity.
“Regarding ZEC and our decision to temporarily stop providing commercial services, We ask both industry working groups and MAS for further support before resuming trading in liquid“The CEO of the exchange, Seth Melamed, told Cointelegraph on July 25, referring to the Singapore Monetary Authority.
“Talking to other VASPs [Proveedores de Servicios de Activos Virtuales]We know of no other exchange that applies to the PSA license [Ley de Servicios de Pago] Go to list ZEC. If there is more clarity about Liquid’s ability to list ZEC, we will be delighted to welcome ZEC back to the thriving liquid ecosystem.“”
Among other things, Zcash was removed from the list
Electric Coin Company, the group that oversees Zcash’s assets, tweeted on July 22nd about Liquid’s plans to remove ZEC from the list. This was followed by a public announcement by the exchange, declaring the withdrawal of 27 different crypto assets, including ZEC, as of July 24.. The move will occur if the exchange attempts to obtain regulatory approval in Singapore through a Payment Services Act license, as described in the release.
“MAS had several meetings with the VASPs about their concerns about a list of privacy currencies,” said Melamed.
“MAS also ordered that All VASPs submit a plan for compliance with the Fund Travel Rule and the FATF AML / CFT guidelines“He added, referring to anti-money laundering and anti-terrorist financing laws as part of the International Financial Action Task Force.
Data protection regulations contradict the surveillance efforts
Privacy coins, also called anonymous crypto assets, Make great efforts to hide transactions, resulting in a lack of tracking data to protect users’ privacy. However, regulations value traceability.
Liquid also eliminated assets that focused on the gaming and pornography industryMelamed referred to the regulatory provisions for such assets. “Remember that MAS will never name a currency specifically, “the regulator said, adding:” They will set out our principles and expectations for the VASPs.“”
However, Melamed noted an extreme shortage of previous volume due to assets that the Liquid Exchange eventually removed from the list, including ZEC.
Noting the impact of legal requirements in the cryptocurrency industry, Melamed expressed greater concern than the conventional world.
He explained that:
“The biggest problem is that Regulators and FATF are creating rules and guidelines for exchanges that could be more demanding than what banks require. That is the only reason why we made the deletions. Do I want to remove ZEC from the list? Of course not. Do I have a choice? No I don’t have it “.
Contrary to what is happening in Singapore, the Gemini exchange has included in the list in accordance with the Zcash 2018 regulation, even an exchange in New York, a state that adheres to strict regulations.
* Helen Partz reported on this story.
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