Binance, the world's largest cryptocurrency exchange by trading volume, announced on February 6th that it will invest its leading privacy coin, Monero (XMR), in three other tokens: Aragon (ANT), Multichain (MULTI), and Vi ( VAI) announced that it would be delisted.
Delisting is scheduled for February 20, 2024. Binance stated that the token no longer meets the high listing standards expected to provide users with a healthy and sustainable crypto ecosystem.
TLDR
- Binance announced that it will delist its privacy coin Monero (XMR) along with three other coins on February 20, 2024.
- Monero delisted as it no longer meets Binance’s listing standards and contribution to a healthy cryptocurrency ecosystem
- Following Binance’s delisting announcement, Monero price fell by around 30%, hitting a 20-month low.
- Other exchanges such as OKX have also delisted or are planning to delist privacy coins such as Monero and Zcash.
- Delisting could signal further regulatory pressure and scrutiny on Binance, despite CEO Zhao pleading guilty in US court
The news caused Monero's price to plummet by more than 30% to a 20-month low of $114, causing huge volatility and wiping out billions of dollars in market value.
Monero was already under pressure after fellow top 10 cryptocurrency exchange OKX moved to delist its token late last year, along with other privacy coins Zcash and Dash.
Privacy coins like Monero enhance user anonymity by obscuring transaction flows on the network. This makes it extremely difficult for regulators and law enforcement to track payments and identify participants.
As cryptocurrencies seek more mainstream adoption, privacy coins are facing increasing regulatory backlash across jurisdictions for facilitating potential illicit financing.
Monero never compromises your privacy.
Monero can be traded on other exchanges, DEXs, and atomic swaps. Please keep your XMR for yourself. https://t.co/Uba3GwZMRW
— Monero (XMR) (@monero) February 6, 2024
Binance previously delisted Monero and other privacy coins in countries with strict anti-money laundering laws, such as France and Italy, but later changed its mind.
The delisting could signal a global policy shift and indicate that Binance is under significant pressure from regulators around the world to increase compliance and transparency.
This comes after Binance founder and former CEO Changpeng “CZ” Chao pleaded guilty in 2023 to violating U.S. sanctions and anti-money laundering laws. The thing was done. Chao will be sentenced in the United States later this month and could face up to 18 months in prison.
Monero fell sharply following the news of Binance's delisting.
While bad for Monero, I primarily see this delisting as a sign of Binance's slow demise. They are now “highly compliant” and can no longer choose which assets they support.
— John Brown (@john_j_brown) February 6, 2024
Binance has also been battling bans in multiple states as scrutiny of the largely unregulated cryptocurrency industry reaches its peak.
Bad for Monero, some analysts see the delisting as a new sign of the demise of Binance, which has struggled to reconcile its freewheeling roots with growing regulatory constraints. Some see it as a sign.
Other top exchanges are following suit, and privacy coins face an uncertain future in a cryptocurrency industry that seems left behind.
