Privacy coins are fairly controversial within the cryptocurrency community because of their untraceable nature. While many love the use of privacy coins for this very purpose, some are concerned about its use for crime as it has become a currency of choice for extortion
and among criminals as it is near impossible to trace who uses them. This is an ongoing discussion as while some continue to defend privacy coins others feel as though they should no longer be used.
Further adding to this discussion, Upbit, a South Korean crypto exchange announced on September 20, 2019 that they will suspend the use of certain privacy tokens on your platforms from September 30, 2019 and these tokens are Monero (XMR), DASH, ZCash (ZEC), Haven (XHV), BitTube (TUBE) and PIVX.
As a result of this new development, the exchange will know longer accept deposits of these privacy tokens and will cancel all orders that have been made before the transaction in South Korean, Super bitcoin, ether and so on. The reason that has been given for the delisting is due to the fact that they are privacy coins and as such, there are concerns about money laundering as well as inflow from external networks.
This came is just days after OKEx, another cryptocurrency exchange announced that they would be delisting about five altcoins which included Monero, super bitcoin and so on. The reason OKE gave for the delisting is that privacy coins are contrary to the new regulations stipulated by the Financial Action Task Force which is a body established in 1989 to combat money laundering and while compliance with the task forces guidelines is not required, failure to do so could land a firm on a national blacklist which could hurt a business on the long run.
These new developments could be indicative of a shift in attitude towards privacy coins as while they were favored by many, the privacy concerns about money laundering could trump these benefits. It should be noted that one of the biggest arguments against the upcoming Libra token is its possible use for money laundering so clearly world governments have great concern in that regard.