The world's leading crypto exchange in terms of trade volume, Binance, made headlines on February 6th by announcing it would be delisting Monero (XMR) alongside three other tokens, namely Aragon (ANT), Multichain (MULTI), and Vai (VAI).
The removal from listings is planned for February 20th, 2024. Binance justified this action by asserting these tokens no longer align with the rigorous listing criteria required for maintaining a stable crypto ecosystem for their users.
TLDR
- Binance has formally stated that it will withdraw support for privacy coin Monero (XMR) and three additional tokens come February 20th, 2024.
- This decision is rooted in Monero not fulfilling Binance’s high bar for listing and contributing to a vibrant crypto environment.
- Following Binance's announcement, Monero's market value plummeted about 30%, reaching its lowest point in 20 months.
- Major platforms like OKX are also following suit, having either removed or planning to eliminate privacy tokens such as Monero and Zcash from their offerings.
- This removal might be an indication of escalating oversight from regulatory bodies on Binance itself, despite its previous CEO Zhao admitting guilt in a U.S. court.
The news sent Monero’s Monero's value took a significant hit, plunging more than 30% to a mere $114, which incited extreme market fluctuations and wiped out billions in value.
Monero was already experiencing challenges as OKX, a prominent exchange, had moved to delist it, alongside other privacy coins like Zcash and Dash, around the close of the previous year.
In the world of cryptocurrency, privacy coins like Monero offer an additional layer of secrecy by disguising the transaction details within their networks. This makes tracking payments and identifying users a daunting task for authorities.
As cryptocurrencies aim to gain a foothold in mainstream finance, privacy coins are encountering significant regulatory resistance for their role in potentially facilitating unauthorized transactions.
Monero remains steadfast in its commitment to user confidentiality.
You can continue trading Monero on various other platforms, including decentralized exchanges and through atomic swaps. Ensure you manage your own XMR wallet. https://t.co/Uba3GwZMRW
— Monero (XMR) (@monero) February 6, 2024
Previously, Binance had pulled Monero and similar privacy tokens from its listings in regions with stringent Anti-Money Laundering regulations like France and Italy, although they later reversed those decisions.
The current delistings could be pointing to a broader policy change, signifying that Binance is under considerable pressure from global regulatory bodies to enhance its compliance and transparency efforts.
This unfolding situation occurs even after Binance’s founder and prior CEO Changpeng 'CZ' Zhao admitted to breaching U.S. sanctions and Anti-Money Laundering regulations in 2023. Zhao now potentially faces up to 18 months behind bars in the U.S.
Monero faced a sharp downturn following the announcement of its delisting by Binance.
While it's undoubtedly a tough blow for Monero, some argue this delisting is an ominous sign for Binance itself, highlighting its struggle to balance open-market principles with regulatory demands.
— John Brown (@john_j_brown) February 6, 2024
Binance has not only faced a series of prohibitions across various states but is also grappling with heightened examination as the largely unregulated crypto sphere comes under intense scrutiny.
Though Monero is hard-hit, some insiders view the delisting as indicative of Binance's gradual decline, as it finds itself ensnared by the increasing web of regulatory requirements.
With significant exchanges echoing the delisting trend, privacy coins are embarking on an uncertain journey as the cryptocurrency landscape evolves, possibly leaving them obsolete.
