It appears that UK users will no longer be able to access Monero on one of the major cryptocurrency exchanges. There have always been concerns about the absolute privacy that this digital asset offers to its Bitcoin competitor. To date, it is impossible to trace Monero transactions, making it the ultimate privacy coin. The government is concerned that individuals will use it to evade taxes.
Another concern is that cryptocurrencies could be used as a tool for crime, although it is unclear if this is true or not. However, it remains a high concern and even countries where cryptocurrencies are not illegal are cracking down on them. The most recent example is the UK, where regulations have led to Kraken being banned for UK citizens.
Monero delisted over regulations
In an email to users posted on Reddit, Kraken explained the reason for the delisting, explaining that the cryptocurrency exchange is seeking to comply with UK regulations and will no longer support Kraken (Payward Ltd) on its platform. The delisting will take place within a week, impacting trading activity around privacy coins.
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Kraken announced in an email that starting November 26, UK users will no longer be able to trade Monero (XMR) on its platform. All trading activity will be suspended, including instant buy/sell services and order book trading for the XMR/BTC, XMR/USD and XMR/EUR pairs.
In addition to the suspension of trading services, UK users will also be unable to deposit funds into their Monero balances at the exchange after November 26. However, users will be able to withdraw all of their current Monero balances to other wallets or exchanges.
XMR trading at $234 | Source: XMRUSD on TradingView.com
Margin trading is also being affected, with the effect taking effect gradually. On November 23rd, UK users will no longer be able to increase their Monero margin positions on the exchange, but they will be able to decrease them. Three days later, on November 26th, the exchange will forcefully liquidate all open margin positions and cancel all open orders.
Finally, the Kraken team said: “We appreciate your understanding and apologize for any inconvenience caused. If you have any questions, please feel free to contact our support team.”
Why crack down?
Monero is one of the few cryptocurrencies that has managed to give investors complete privacy, making it the coin of choice for investors who want control over their own money. As this Reddit user nicely put it, “It's one of the few coins that truly gives you control over your money. You get security without sacrificing privacy, something that would have been unthinkable just a few years ago.”
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Monero is a cryptocurrency that maintains the privacy element behind the creation of cryptocurrencies. Investors have full control and it is impossible for third parties to interfere or see where their funds are going. Also, governments cannot tax them because they cannot be tracked, which is why they crack down on privacy coins to restrict their use by their residents.
Featured image from Kraken Blog, chart from TradingView.com
