February 23, 2024

Binance, the world’s largest cryptocurrency exchange, has reversed its decision to delist certain privacy coins in Europe.

Binance earlier revised its operations to comply with EU regulations and delisted some privacy coins after receiving feedback from multiple projects and communities.

Binance backs away from initial decision

The European Union’s new Markets in Cryptoassets (MiCA) regulation has sparked a move to delist privacy coins from European markets. These new regulations call for greater transparency and information sharing in cryptocurrency transfers and transactions. Binance stated in a press release published on June 26,

“After careful consideration of feedback from our community and several projects, we have revised the way privacy coins are categorized on our platform to comply with EU-wide regulatory requirements.”

It also added that since Binance operates as an exchange registered in multiple EU jurisdictions, the exchange is obliged to comply with local regulations. These require them to monitor the transactions of the tokens listed on the platform. The exchange had previously announced that it would shut down trading services for 12 privacy-focused tokens. These include well-known currencies like Dash, Monero, and Zcash, as well as lesser-known ones like SCRT and XVG.

The move comes amid mounting regulatory pressure on the cryptocurrency ecosystem and will affect users in France, Spain, Poland and Italy. The delisting of these coins means that users in these jurisdictions cannot purchase these privacy coins, which is a major blow to privacy coin enthusiasts. Binance stated at the time,

“While our goal is to support as many high-quality projects as possible, we need to comply with local laws and regulations on privacy coin transactions to ensure that we can continue to serve as many users as possible.” As part of Binance’s ongoing compliance process, As part of this, we have contacted affected users to inform them that they will no longer be able to buy or trade privacy tokens on our platform after June 26th. “

Binance It’s not the only exchange that has delisted privacy coins. Several other well-known exchanges such as Huobi, Kraken and Bittrex have removed several popular privacy coins such as Dash and Monero from their listings. Additionally, some governments, such as Japan, South Korea, and Dubai, have taken a tough stance on privacy coins, some even banning them outright.

Project eager to appease users

Several cryptocurrencies such as XMR, MOB, BEAM, ZEN and FIRO are still restricted, according to email communications sent to users. However, following the lifting of the ban, several cryptocurrency projects took to Twitter to reassure users that their projects would not be affected. The Verge currency posted an update back on June 22, saying:

“We’re happy to inform you that $XVG will not be affected by @binance’s trading restrictions on #privacy coins in certain EU countries. Verge uses a public blockchain with visible transactions, amounts and wallet addresses.”

Secret Network also released an update for its users stating that it is not among the coins that Binance plans to delist.

“Speak, Binance listen! @binance will not delist $SCRT and 6 other privacy-focused cryptocurrencies in European countries.”

Current Regulatory Landscape

Binance made the decision to reverse the delisting of the privacy coin after receiving feedback from the cryptocurrency community and reviewing its operations to comply with EU regulatory requirements. The initial move to delist the tokens was the result of the EU Market for Cryptoassets (MiCA) regulation, which was signed into law on May 31. The regulation also includes a “travel rule” for transactions, requiring greater transparency and information sharing. This conflicts with the very nature of privacy coins, leading to some concerns about compliance.

However, the cryptocurrency industry has been welcoming the crypto asset market regulation, saying it provides clear regulation for digital assets. Crypto payment service provider Ripple is one company that has hailed the clarity the MiCA regulation brings. In addition, ESMA plans to start the MiCA consultation process in July.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.