Controversy over Binance’s Monero delisting raises questions about privacy coins
Posted: February 9, 2024 10:31 AM Updated: February 9, 2024 10:31 AM
Correction and fact check date: February 9, 2024, 10:31 AM
briefly
Binance’s decision to delist Monero (XMR) has sparked heated debate among advocates of financial autonomy.
Cryptocurrency exchange Binance announced its intention to delist Monero (XMR), a cryptocurrency that uses a blockchain with privacy-enhancing technology. The announcement sparked controversy within the cryptocurrency sector, particularly among advocates who emphasize the importance of financial autonomy and resistance to control or censorship.
Monero acts as a privacy coin and has a special appeal for users who see it as the digital equivalent of everyday personal money. However, despite its principled foundation, Monero has maintained a niche position in the cryptocurrency market. The coin’s current market cap is $2.2 billion, a significant difference compared to Bitcoin’s actual market cap of $920 billion.
Since delisting, Monero’s value has fallen by almost 25%. As of this writing, Monero native token XMR is trading at $122.80, down more than 3% in 24 hours, according to CoinMarketCap.
But the broader implication is that individuals who prioritize privacy now have fewer platforms on which to trade their coins. In particular, Binance’s competitor, the cryptocurrency exchange OKX, also excluded privacy coins, including Monero, from its listing at the end of last year.
Privacy coins can currently be traded on smaller exchanges such as Kraken and Bitfinex, but they are currently located on the outskirts of the cryptocurrency landscape.
Binance has difficulty listing Monero as its origin and destination become difficult to trace. Currently, exchanges require that all deposits originate from publicly transparent addresses.
Binance takes regulatory compliance very seriously. The decision to delist Monero is stated to be consistent with a broader commitment to enhance transparency in line with the changing landscape of regulatory frameworks.
The company has now been fined $4.3 billion by U.S. authorities and pleaded guilty to money laundering charges last year. Additionally, Binance has committed to ongoing monitoring to improve its ability to identify and report suspicious transactions under an agreement with the United States Financial Crimes Enforcement Network.
Backlash against privacy coins
According to Rainey Reitman, civil liberties advocate at the Filecoin Foundation for the Decentralized Web, these developments could signal a broader backlash against privacy coins. Binance’s decision to delist Monero can therefore be seen as a setback to its efforts to build a truly private financial network supported by cryptocurrencies.
If cryptocurrency exchanges decide to only list coins they believe they can monitor for suspicious activity, this raises a compelling argument that the cryptocurrency market may not be all that different from what it was in 2008. This paper envisioned a world in which traditional financial institutions operated without the need for them.
Binance’s recent decision to delist Monero has sparked controversy within the cryptocurrency sector and prompted a re-evaluation of privacy in the evolving cryptocurrency exchange landscape.
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About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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