Cryptocurrency exchange Kraken will end support for privacy token Monero in the European Economic Area (EEA).
Kraken has announced that it will suspend all Monero (XMR) market trading and deposits within the EEA from October 31, 2024. This includes trading pairs with the US dollar, the euro, Bitcoin (BTC), and Tether's USDt (USDT).
Kraken cited regulatory and compliance obligations as the reason for discontinuing support for XMR. The exchange said in a statement:
“After thorough consideration and consideration of all viable alternatives, we have concluded that we have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.”
Kraken will suspend trading and depositing XMR, but users will have until December 31st to withdraw their tokens. If users do not withdraw their XMR tokens by the deadline, Kraken will convert the tokens to BTC. Converted tokens will be distributed on January 6, 2025.
New regulations prohibit the use of privacy tokens
The decision follows developments in European Union regulations that prohibit crypto asset service providers (CASPs) from using privacy-focused tokens like Monero or offering accounts to anonymous users. .
Earlier this year, Kraken ended XMR trading in Ireland and Belgium. On April 11, the exchange warned users to close their XMR positions or have them automatically closed. In 2021, Kraken discontinued Monero support for UK-based customers.
Other jurisdictions are also cracking down on privacy-focused tokens. In 2018, Japan began banning tokens with enhanced anonymity. In 2020, South Korea also banned privacy coins from trading platforms, and Australian exchanges began delisting privacy tokens due to new regulations.
On February 7, 2023, Dubai banned all activities related to the issuance of privacy coins and anonymity-enhancing tokens.
Related: Kraken acquires Dutch broker BCM as part of European expansion
Monero token drops 8% after Kraken support ends
The day after Kraken's announcement, the price of XMR fell by 8%. The token fell from $154 on October 1st to $141 on October 2nd, according to data from Cointelegraph Markets Pro.
Monero 7-day price chart. Source: Cointelegraph Markets Pro
While the delisting may have had an impact on Monero's price, the broader crypto market cap has also taken a hit in the past 24 hours, with the overall market cap falling by 6.3%.
magazine: Web3 Gamer: SocialFi boosts gaming revenue, Axie Infinity creator wants to retire Discord
