Kraken Ends Support for Privacy Token Monero in Ireland and Belgium amid Regulatory Pressure
Summary:
Kraken, a leading cryptocurrency exchange, is terminating support for Monero (XMR), a privacy coin, for its Belgian and Irish customers due to recent regulations prohibiting anonymous users and privacy-centric tokens. By May 10, all Monero trades and deposits will end, and any remaining Monero coins will be automatically converted to Bitcoin after June 10 when Monero will be completely delisted from the platform. This decision follows a similar move by other exchanges worldwide in response to regulatory pressures.
Kraken, the cryptocurrency exchange platform, has decided to discontinue support for the private coin, Monero (XMR) for its clients in Belgium and Ireland. Kraken has issued a statement indicating both trades and deposits involving the XMR currency will cease starting May 10. All speculative trade positions must be liquidated prior to this deadline; otherwise, Kraken will undertake to close these positions. The platform also pointed out that a full delisting of Monero is set for June 10, thus stopping the withdrawal of XMR by users in Ireland and Belgium.
Kraken further clarified that any unutilized Monero coins on an account beyond the dictated deadline will be automatically transitioned into Bitcoin (BTC). This move aligns with recent directives in the European Union barring crypto service suppliers from accommodating anonymous customers or leveraging privacy-centric tokens like Monero. Despite this change, Monero’s value remains relatively stable, with a current price at approximately $132.35. CoinGecko data reveals a 24-hour high of $136.59 and a weekly high of $139.15.
Back in February, Binance stated its intent to remove Monero from its list, precipitating a dip in the token’s price. XMR’s value fell from $165 to a five-month low of $136 on February 6, further dropping to $105 on February 7 before rebounding the following day.
Since 2018, regulators worldwide have been implementing stringent measures on private tokens. Japan was the first to impose a ban on tokens promoting anonymity. In 2020, South Korea’s financial authority also prohibited privacy coins from exchanges, and Australian platforms began delisting these tokens in compliance with new regulations. On February 7, 2023, Dubai likewise presented guidelines barring the issue of tokens enhancing anonymity and all virtual asset activities concerning private coins.
Other than Binance and Kraken, exchanges including Huobi and OKX have also decided to delist Monero along with other digital assets that promote privacy. On September 19, 2022, Huobi delisted Monero in a bid to adhere to international regulations. Additionally, OKX has completely taken Monero off its trading platform since January 5 in a bid to “sustain a solid spot trading environment” and based on feedback they received from their user base.
Published At
4/11/2024 2:33:55 PM
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