Important points
- Kraken will suspend Monero trading within the EEA by the end of October 2024 due to regulatory changes.
- Any remaining Monero holdings will be converted to Bitcoin after the withdrawal deadline of December 31, 2024.
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Kraken, one of the world's largest cryptocurrency exchanges, has announced that it will delist Monero (XMR) for users in the European Economic Area (EEA) due to regulatory changes. This decision marks a major shift in the availability of privacy-focused cryptocurrencies in the region.
The US-based exchange will suspend all XMR trading and deposits for EEA customers on October 31, 2024 at 15:00 UTC. This includes the closure of the XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT markets. Any open orders will be automatically closed at this point.
Kraken has set a withdrawal deadline of December 31, 2024 at 15:00 UTC for users to remove their XMR holdings from the platform. After this date, any remaining XMR balances will be automatically converted to Bitcoin (BTC) at the prevailing market rate. The exchange plans to distribute the converted BTC to affected users by January 6, 2025.
In a statement, Kraken emphasized that this decision was not taken lightly, stating: “We have not taken this decision lightly and remain committed to providing an exceptional trading experience to our European customers. “There is,” he said. The exchange also reaffirmed its commitment to supporting comprehensive digital assets while adhering to regulatory and compliance obligations.
Regulations regarding privacy coins
The move is part of a broader trend of increased scrutiny of privacy coins like Monero, which offer enhanced anonymity of transactions. The delisting follows Kraken's decision in June to discontinue XMR support for customers in Belgium and Ireland.
The regulatory pressure stems from upcoming changes in the European Union's cryptocurrency landscape. The Markets in Cryptoassets (MiCA) Act and new anti-money laundering (AML) regulations, set to come into force in December, are forcing crypto service providers to rethink their support for privacy-focused coins.
Patrick Hansen, Director of EU Strategy and Policy at Circle, said new AML regulations will prohibit crypto asset service providers from offering privacy coins and prevent users from making merchant payments using tokens such as XMR. He explained that it was done. This regulatory change had a domino effect across major crypto exchanges, with Binance and OKX taking similar steps to delist their privacy coins.
The decision highlights ongoing tensions between privacy protection technology in the cryptocurrency space and regulatory efforts to combat money laundering and illegal activity. The future accessibility of privacy coins in regulated markets remains uncertain as exchanges like Kraken navigate these complicated waters.
In April, Kraken announced the suspension of Monero trading in Ireland and Belgium due to strategic realignment. Earlier this year, Binance completed the delisting of Monero in accordance with global regulatory requirements, causing significant price fluctuations in Monero's market value. Kraken recently completed the acquisition of Dutch crypto broker BCM to expand its European operations.
For Monero holders in the EEA, this announcement is an important reminder to take action before the deadline. Users should plan to withdraw their XMR or prepare for automatic conversion to BTC. Monero's market price and the impact on the overall ecosystem remains to be seen, as one of the world's largest crypto exchanges restricts access in key economic regions.
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