Cryptocurrency exchange Kraken will suspend trading and deposits of Monero (XMR) in the European Economic Area (EEA) by October 31, 2024.
This decision affects the USD, EUR, BTC, and USDT trading pairs. Kraken cited regulatory and compliance obligations as the reason for the move following new European Union regulations that prohibit crypto asset service providers from supporting privacy tokens like Monero.
Kraken users in the EEA have until December 31st to withdraw their XMR tokens. Any remaining tokens after the deadline will be automatically converted to Bitcoin (BTC) and the converted assets will be distributed by January 6, 2025.
The action is in line with a broader regulatory crackdown on privacy coins around the world, including bans in Japan, South Korea, and Australia. Following this announcement, Monero's price fell 8% from $154 to $141 amid a broader decline in the crypto market.
Privacy coins like Monero are less popular with regulators and law enforcement because they are designed to keep users anonymous by hiding transaction details. Their unique features make it difficult to trace the flow of money and increase the privacy of your financial activities.
This development follows a similar move by another major exchange, OKX, which recently announced the delisting of several trading pairs involving coins such as ANT, XMR, ZEC, and ZEN.
Marcus Hughes, Kraken’s global head of regulatory strategy, revealed earlier this year that the exchange is preparing for a variety of scenarios, including dropping support for certain tokens such as USDT. “This is something we are actively considering,” Hughes said, adding that a final decision would be made once the regulatory position is clearer.
Kraken’s consideration follows the actions of another major cryptocurrency exchange, OKX, which removed Tether trading pairs in Europe in March, citing impending stablecoin regulations. An OKX spokesperson said the delisting will allow the exchange to introduce euro implementation for EEA-based customers. He added that this adjustment will only affect a small portion of the exchange's user base. In addition to phasing out the USDT pair,
