WEB3
by BSCN
February 6, 2024
This decision, effective from February 20, follows Binance's routine reviews aimed at ensuring listed digital assets meet the platform's “high standards.”
Binance has announced its decision to delist Monero (XMR) alongside Aragon, Multichain, and Vai, effective February 20.
As a result of the news, Monero's native coin, XMR, has seen a steep 32% price drop. In response to increased regulatory scrutiny, some exchanges have decided to delist privacy coins.
The delisting, while not entirely unexpected, raises questions about the future of Monero. In January, Binance had placed "monitoring tags" on Monero and several other assets. Rival exchange OKX also delisted Monero, Zcash, and Dash last month.
The cryptocurrency community now fears whether this marks the end for privacy-focused coins like Monero.
Privacy coins, designed for enhanced anonymity in transactions, face regulatory tension globally. The technology's potential misuse for illicit activities such as money laundering and terrorist financing has drawn increased scrutiny.
Exchanges find themselves torn between customer demands for privacy and compliance with global financial regulations.
The European Union's Markets in Crypto-Assets Regulation (MiCA) prohibits trading platforms from admitting crypto-assets with anonymizing functions. Compliance requires identification of asset holders and their transaction history. By December 2024, privacy coin developers and exchanges must collaborate on technical solutions.
With a daily trading volume of $15 billion, Binance's dominant position poses a significant challenge to privacy-focused projects. After pleading guilty to violating US banking law in November, the exchange must implement stronger anti-money laundering and know-your-customer controls.
Further, the recent indictment of Tornado Cash founders, charged with laundering over $1 billion in criminal proceeds, highlights the regulatory environment's stance against privacy projects. Tornado Cash, known for its privacy features, has faced accusations of sanctions violations and money laundering.
While Monero and Zcash boast a combined market capitalization of $2.5 billion, Binance's delisting poses a serious risk to their future. The challenges presented by regulatory pressures, coupled with the need for compliance, raise doubts about the viability of privacy-focused projects in the current environment.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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