Binance has issued a cautionary statement, hinting at the potential delisting of 10 privacy coins, such as Monero, Zcash, and Horizen, amid regulatory concerns.
Thank you for reading this post, don't forget to subscribe!In an official announcement, the cryptocurrency exchange stated that these tokens had been labeled with a “monitoring tag” and may not satisfy listing criteria associated with team dedication, network security, trading volume, and various other factors.
“Tokens with the Monitoring Tag exhibit notably higher volatility and risks compared to other listed tokens. These tokens are closely monitored; with regular reviews conducted […] Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance stated.
The declaration promptly influenced prices, the digital assets to drop in a 24-hour trading cycle.
Privacy coins enable users to hide wallet balances, transaction details, and additional information. This has drawn the attention of international regulators concerned about potential misuse for illicit purposes.
Last year, Binance announced its intention to eliminate privacy coins to adhere to European laws. Critics have proposed that the recent warnings are linked to sustained heightened regulatory scrutiny.
Binance has instituted a requirement for traders of these tokens to complete periodic quizzes on associated risks. Some interpret this as another effort to dissuade usage, possibly influenced by compliance pressures. Reuben Yap, co-founder of Firo said in an interview:
“The monitoring tag has been placed on FIRO along with other privacy coins due to increased regulatory pressure, including from MiCA, recent initiatives from U.S. regulators and compliance to Binance’s settlement with the U.S. DoJ.”
