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Recent Binance Announced The company announced it has added three major privacy-focused coins to its watchlist due to volatility and regulatory concerns. The list includes Monero (XMR), Zcash (ZEC), Firo (FIRO) and his other seven coins tagged. surveillancereviews, and possible delisting.
Binance says these coins now have a “monitoring tag” and must pass a risk assessment every 90 days to be tradeable. This review is part of the regular testing that crypto projects must undergo to ensure they continue to meet standards regarding team commitment, trading volume, on-chain security, and liquidity.
Cryptocurrency exchanges have warned that if any of the monitored tokens fail to meet listing requirements, they will eventually be delisted. This development follows a similar move by rival exchange OKX, which recently delisted Monero and other privacy coins. In September 2023, Huobi also delisted several of his privacy coins, including Verge (XVG), Decred (DCR), and Dash (DASH).
What are privacy coins and why are there concerns?
Privacy coins such as Monero and Zcash use advanced encryption techniques to hide transaction details and the identities of participants. The aim is to enable private and untraceable payments and savings.
For example, Monero shuffles techniques to hide account balances and split transactions into smaller, non-attributable parts. Zcash leverages new “zero-knowledge proofs” that enable transactions without revealing the underlying information.
But their inherent anonymity has raised regulatory concerns that these tools could enable illegal activities such as money laundering and ransomware. A report from Chainalysis Privacy coins have proven popular on darknet marketplaces.
The recent pushback stands in stark contrast to privacy coin creators' advocacy for the realization of individual financial sovereignty and human rights, but delisting by major exchanges will have a major impact on accessibility.
Monero, launched in 2014, uses features such as stealth addresses, ring signatures, and ring confidential transactions (RingCT) to ensure opacity of blockchain activity. Zcash began in 2016 and advocated for protected private or transparent public transactions. It employs zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) proofs and has faster throughput and lower fees than Bitcoin.
Both networks have extensive exchange listings and usage around the world. However, increased regulation, particularly in relation to money laundering and terrorist financing, may continue to threaten licensed trading platforms such as the centralized exchanges mentioned above.
Coins listed under Binance's new watch tag include Aragon (ANT), Keep3rV1 (KP3R), Mdex (MDX), MobileCoin (MOB), Reef (REEF), Vai (VAI), and Horizen (ZEN).
Of note, Horizen will no longer function as a privacy coin as its developers have decided to deprecate the main chain's shielded pool in June 2023. This move removes all privacy features that were associated with Horizen at the consensus level (Horizen describes itself as a “Layer 0” blockchain).
The team behind Horizen cites concerns around global regulatory scrutiny as one of the factors driving the change in direction. Published guidelines About the regulatory framework for projects and coins that operate using mixers and tumblers, zero-knowledge proofs, and other privacy-enhancing technologies.
Following Binance's announcement, Filo Since then, the price has fallen 21.3% in the 48 hours and is currently trading at $1.51. extremeMeanwhile, the stock rose +5.3% in the first 24 hours after the announcement, and fell -3.1% in the following 24 hours. Zek Bitcoin also fell by 6.9% during the same period, according to data compiled by CoinGecko.
As a field, privacy coin It has fallen 4.5% in the past 24 hours and -11.6% in the past week.
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