It is not uncommon for cryptocurrency exchanges to add or remove specific cryptocurrencies. It is their prerogative to do so whenever they see fit. In the case of BitOasis, the company is removed both ZCash and Monero from its platform. That in itself is not the biggest concern, as the company is asking some very odd questions. The bigger question is whether or not this will impact either altcoin.
A Surprise Delisting and Withdrawal Scheme
Not too many people expected BitOasis to delist not one but two anonymous or privacy-oriented cryptocurrencies in rather quick succession. The decision to remove both ZCash and Monero will undoubtedly spark some big debates. Both currencies are appreciated by their respective communities, yet seemingly struggle to gain major traction in this day and age.
Even so, the currencies will be gone as of May 31st. Users will need to exchange their balances to either AED or Bitcoin. For some unknown reason, users cannot withdraw in either ZEC or XMR, which could have a nefast impact on those currencies’ respective prices. A very odd decision, albeit it seems the exchange wants to track where this money is going.
The odd Questions are Bothersome
As if the delisting of both currencies isn’t strange enough, the company is also asking some very personal questions. They want users to explain the source of their funds, as well as the purpose of the purchased XMR and ZEC. Additionally, the external withdrawals of either currency will need to be explained as well. For some reason. BitOasis expects users to tell who the beneficiary was or why they receive said funds.
Last but not least, the company wants to know if anyone purchased either XMR or SEC on behalf of third parties. Even if that were to be the case, there is nothing wrong with doing so. Up until this week, both Monero and ZCash were seemingly fine assets for this cryptocurrency exchange. However, that situation has come to change all of a sudden, without much of an explanation.
A Very Short Timeline to Act
Whereas most delisted coins can be exchanged or withdrawn for multiple weeks, BitOasis seemingly maintains an entirely different schedule. The company forces users to convert their balances before or on May 31, which is just under a week from today. Interestingly enough, the company never explains to balances which are not converted to either Bitcoin or AED at that time.
Regulatory Pressure Could be a Factor
Roughly two weeks ago, it became apparent BitOasis was looking to obtain a special license in the United Arab Emirates. In April, the company received preliminary approval, which was widely considered to be a prominent sign. After all, any trading platform which remains unlicensed and unregulated will not be welcomed with open arms by the local or neighboring governments.
Keeping that information in mind, it seems plausible the delisting of both XMR and ZEC is part of gaining this license. Anonymous forms of money are a risk to existing financial systems, thus removing them is not an unlikely requirement. It remains to be seen if this angle has any merit, however, As the exchange never explained why both currencies are removed from the platform, any and all explanations remain on the table.
The Potential Impact of this Decision
In terms of trading volume, it is difficult to determine what role BitOasis plays for both XMR and ZEC. The company does not offer any public information, nor is it listed on the major coin tracking platforms. This seems to confirm the decision will not impact either market all that much in the near future. Additionally, both altcoins are traded on many other platforms, thus this removal should not make a big impact.
However, this does create an interesting situation. It is not the first time privacy- and anonymity-oriented cryptocurrencies are removed from exchanges. A similar incident affected ZCash, Dash, and Monero in 2018 when Japan’s Coincheck decided t get rid of all of these markets. This was the result of pressure initiated by Japanese regulators. Other exchanges were quick to follow suit in that part of the world.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
