Australian Crypto Exchanges Forced to Delist Privacy Coins or be Debanked

August 24, 2020, 5:00 PM AEST (updated March 05, 2022)

A number of Australian cryptocurrency exchanges have been warned by major Australian banks to delist access to privacy coins — cryptocurrencies that provide cryptocurrency traders, investors, and users with the ability to make truly anonymous transactions — or be debanked.

Information announced by Australian cryptocurrency exchange Swyftx via social media channels reveals that exchanges that support a variety of anonymized or privacy-focused cryptocurrency tokens are currently being pressured to delist.

Silent War Against Privacy Coins — Comply or Be Debanked 

Several other Australian cryptocurrency exchanges have recently removed access to privacy coins, with no major announcements published regarding the changes. Evidence indicates that Australian exchanges are currently being forced to delist privacy coins or suffer significant consequences. 

Alex Harper, CEO of Swyftx highlighted the importance of fraud prevention within Swyftx exchange to Crypto News, noting that the platform does not fully agree with the apparent privacy coin ban:

“While we do not fully align with the hard-line response of banning all privacy related coins, we will continue to work proactively with our partners and regulators to reduce criminal activity and advance the crypto industry in the most effective ways.”

Australian exchange operators remain tight-lipped regarding the crackdown on privacy coins. Virtually all Australia-based cryptocurrency exchanges that use either Assembly Payments or Monoova — payment automation platforms that use Cuscal banking rails — are required to comply with specific demands.

No Regulatory Basis to Support Privacy Coin Ban

Exchanges that do not comply with the crackdown by either delisting all privacy coins or removing access to Australian traders by August 31 will be debanked. 

While the Australian Government has not yet announced any official stance on privacy coins or made any movements toward a privacy coin ban, several international regulatory bodies have already done so. South Korean cryptocurrency exchange Upbit ceased trading support for several privacy coins in September 2019.

Based on statements published by Swyftx, Australian regulatory bodies and banks appear to be moving in concert to eliminate privacy coin use in Australia in line with guidance published by the international inter-government anti-money laundering guidelines targeting privacy coins in June 2019.

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