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Exchange platform Binance announced on Thursday, January 4th, that it will tighten trading rules for 10 cryptocurrencies, including Monero (XMR) and Zcash (ZEC). These will now come under “intensified surveillance” due to increased risks.
Binance strengthens monitoring of high-risk cryptocurrencies
Binance, a global leader in crypto exchange platforms, announced in a recent press release the expansion of its “Surveillance Beacons” starting January 4, 2023.
The decision comes in the wake of recent regulatory troubles in which Binance faced allegations of money laundering and violation of KYC regulations set by the US SEC.
Among the additional cryptocurrencies that have come under close scrutiny are two cryptocurrencies focused on transaction privacy: Monero (XMR) and Zcash (ZEC). These two cryptocurrencies regularly draw the ire of authorities because, according to some regulators, their anonymity lends itself to large-scale money laundering.
In addition to Monero and Zcash, Binance will also pay close attention to the following tokens: Keep3rV1, Reef, Aragon, Firo, MobileCoin, Mdex, Vai, and Horizen. Meanwhile, the rules have been relaxed for GMX and SushiSwap, which were removed from the list.
Binance has justified its decision by saying that these cryptocurrencies are more volatile and have a higher risk of misuse than other cryptocurrencies. OKX had already restricted trading capabilities for several similar cryptocurrencies last week. Therefore, regular checks ensure that our strict publication standards are met. Failure to comply with these standards may result in delisting.
Decisions in line with compliance policy
To be able to trade these high-risk cryptos, Binance users will be required to take a quiz every 90 days from now on. You will also have to agree to the platform's enhanced terms of use, which aim to raise awareness of the risks involved.
Furthermore, although tokens with Binance's “seed tag” are considered promising projects, they are highly volatile. Risk warning banners are clearly displayed on the trading page.
Binance has ensured that it conducts regular reviews of its crypto projects, taking into account factors such as team commitment, development progress, and KYC compliance. These analyzes allow you to add or remove tokens from your watch list.
Binance, aware of regulators' impending expectations, appears willing to make certain sacrifices, even if it means restricting trading in some trend-generating cryptocurrencies among traders. . The government hopes to regain the shaken trust in the authorities in 2023 by strengthening compliance policies.
In short, this delicate balance between strengthening security and maintaining a dominant position reflects a difficult exercise of moderation by crypto giants.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
