Kraken Crypto Exchange Follows Binance’s Lead in Dropping Privacy-Focused Monero Token

Kraken, a prominent digital asset exchange, has opted to
remove the privacy-focused cryptocurrency
Monero (CRYPTO: XMR) for users based in Ireland and Belgium.

Details of the Announcement: Beginning on May 10, Kraken will halt all XMR trading and deposit activities, according to a
recent announcement.
The exchange is instructing customers to close any related margin positions by this deadline to prevent automatic liquidation.

Withdrawals of XMR are expected to be discontinued on June 10, at which point any XMR left on the platform will be automatically exchanged into bitcoin.

Following precedents set by other leading exchanges, Kraken is the latest to delist Monero. After identifying several privacy coins for potential risks in January, Binance removed Monero from its main service in February. Binance had previously ceased offering privacy coins in Belgium in September 2023. OKX also joined by removing Monero, along with Zcash and Dash, in January.

Market Impact: At the moment of reporting, Monero has experienced a marginal drop of 0.2% over the last day, cumulating in a total decline of 7.7% over the month.

Further Reading:

Binance CEO Richard Teng: Company Has ‘Moved Past’ Its Former Practices

Regulatory Influence: The phasing out of privacy-centric coins such as Monero is primarily influenced by the impending European Union Anti Money Laundering Regulation (AMLR), expected to be cemented in the coming month. This regulation will restrict crypto-asset providers from facilitating privacy coin accounts and is set to be enforced three years after its issue, circa summer 2027.

These actions from Kraken and its peers highlight the growing regulatory environment’s impact on cryptocurrencies, especially those providing enhanced anonymity.

It brings to light the obstacles that privacy coins face in adapting to regulatory frameworks and the implications for their future utilization and acceptance.

Looking Forward: The significance of

altcoins
and

Bitcoin as an institutional investment
will be major topics at Benzinga’s forthcoming

Future of Digital Assets conference
on Nov. 19.

Recommended:

‘Crypto Mom’ Hester Peirce: Aim for ‘A Productive Path’ in Regulation

This article was produced with assistance from AI tools, then edited and released by Benzinga’s editorial team.

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