Binance, the world’s largest cryptocurrency exchange by trading volume, announced on February 6th that it will delist major privacy coin Monero (XMR) along with three other tokens, Aragon (ANT), Multichain (MULTI), and Vai (VAI).
The delistings are scheduled for February 20th, 2024. Binance said the tokens no longer meet the high listing standards it expects for providing users a healthy and sustainable crypto ecosystem.
TLDR
- Binance announced it will delist privacy coin Monero (XMR) along with 3 other coins on Feb. 20th, 2024
- Delisting due to Monero no longer meeting Binance’s listing standards and contribution to a healthy crypto ecosystem
- Monero price plunged around 30%, reaching a 20-month low following the Binance delisting announcement
- Other exchanges like OKX have also delisted or plan to delist privacy coins like Monero and Zcash
- Delisting could signal further regulatory pressure and scrutiny on Binance despite former CEO Zhao pleading guilty in US court
The news sent Monero’s price plunging over 30% to a 20-month low of $114, sparking massive volatility and erasing billions in market value.
Monero had already been facing pressure after fellow top-10 crypto exchange OKX moved to delist the token along with other privacy coins Zcash and Dash late last year.
Privacy coins like Monero offer users enhanced anonymity by obscuring the flow of transactions on their networks. This makes it much more difficult for regulators and law enforcement to track payments or identify participants.
As crypto aims for greater mainstream adoption, privacy coins have faced growing regulatory backlash across jurisdictions for facilitating potential illicit financing.
Monero will never compromise on privacy.
You can trade Monero on other exchanges, on DEXs, and with atomic swaps. Please self-custody your XMR. https://t.co/Uba3GwZMRW
— Monero (XMR) (@monero) February 6, 2024
Binance had previously delisted Monero and other privacy coins in countries with stricter Anti-Money Laundering laws like France and Italy, but later reversed course.
The latest delisting suggests a global policy shift that could indicate Binance is facing significant pressure from regulators worldwide to increase compliance and transparency.
This comes even after Binance founder and former CEO Changpeng “CZ” Zhao pleaded guilty to violating US sanctions and Anti-Money Laundering laws in 2023. Zhao faces up to 18 months in US prison when he is sentenced later this month.
Monero dropped strongly on the delisting news from Binance.
While bad for Monero, I mainly see this delisting as a sign of the slow demise of Binance. They are now “so compliant” that they cannot choose anymore which assets to support.
— John Brown (@john_j_brown) February 6, 2024
Binance has also battled bans in multiple states as scrutiny over the largely unregulated crypto industry reaches fever pitch.
While bad for Monero, some analysts see the delisting as another sign of Binance’s demise as it struggles to reconcile its freewheeling roots with increasing regulatory constraints.
With other top exchanges following suit, privacy coins face an uncertain future in a crypto industry that seems to be leaving them behind.
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