Binance Lending Adding Privacy Coins In Spite of FATF Rules
Binance will be adding three privacy-focused cryptocurrencies to its lending platform in spite of the FATF standards which prompted many exchanges to delist their own anonymous coins.
The annualized interest rate of the new products with a 14-day maturity term, will be 3.5 percent. The total subscription cap for Monero is 300 XMR, for Zcash 600 ZEC, and 300 DASH for Dash.
The Malta-based firm added the privacy coins to Binance lending only a day after OKEx Korea announced that it will delist Monero, Zcash, and Dash formits platform due to Financial Action Task Force (FATF) regulations.
FATF recently released a travel rule which applies which requires crypto firms to track and monitor their users’ financial activities and share them with other FATF-compliant firms and report them to the if they should notice any irregularities.
As privacy coins prevented exchanges from having the required user information, OKEx decided to remove them from its platform in order to be FATF-compliant.
Still, the travel rule has not deterred Binance from adding privacy coins to its new lending platform. The Binance CEO Changpeng “CZ” Zhao posted a cryptic tweet with regards to privacy:
“Do you think privacy is a fundamental right?” read the tweet.
FATF has not made any recent comments regarding privacy-focused cryptocurrencies or their use. Its June 2019 notice insisted that compliance was recommended in order to stop cryptocurrencies from being used in money laundering and terrorist financing.
“The obligations require countries to assess and mitigate their risks associated with virtual asset activities and service providers; license or register service providers and subject them to supervision or monitoring by competent national authorities—(notably, countries will not be permitted to rely on a self-regulatory body for supervision or monitoring)—and implement sanctions and other enforcement measures when service providers fail to comply with their AML/CFT obligations; and underscore the importance of international cooperation. Some countries may decide to prohibit virtual asset activities based on their own assessment of the risks and regulatory context or to support other policy goals.”- read an excerpt from the notice.
Featured image: Bitcoin Magazine