Binance’s Delisting of Monero Sparks Controversy, Raises Questions on Privacy Coins
In Brief
Binance’s decision to delist Monero (XMR) has sparked heated controversy among advocates of financial autonomy.
Cryptocurrency exchange Binance announced its intention to delist Monero (XMR), a cryptocurrency that employs blockchain with privacy-enhancing technologies. This announcement has generated controversy within the cryptocurrency sector, especially among advocates who stress the significance of financial autonomy and resistance to control or censorship.
Monero serves as a privacy coin, and it holds a special appeal for users who consider it to be the digital equivalent of everyday private currency. However, despite its principled foundation, Monero has maintained a niche position within the cryptocurrency market. Currently, the coin’s market capitalization stands at $2.2 billion, a considerable difference compared to Bitcoin’s substantial market cap of $920 billion.
Since delisting, Monero has experienced a nearly 25% decrease in value. As of the writing time, Monero native token, XMR, is trading at $122.80, undergoing a decline of more than 3% within a 24-hour period, according to CoinMarketCap.
However, the broader implication is that individuals who strongly prioritize privacy now find themselves with fewer platforms for trading their coins. Notably, Binance’s competitor, the cryptocurrency exchange OKX, also delisted privacy coins, including Monero, from its listings late last year.
Privacy coins are currently accessible for trading on smaller exchanges like Kraken or Bitfinex, though they are currently positioned at the outskirts of the cryptocurrency landscape.
The challenge arises for Binance in listing Monero as it becomes difficult to trace its origin and destination. Currently the exchange mandates all deposits to originate from publicly transparent addresses.
Binance places significant importance on regulatory compliance. The decision to delist Monero is stated to be in line with a broader commitment to enhance transparency, aligning with the evolving landscape of regulatory frameworks.
Currently, the company incurred a substantial $4.3 billion fine from United States authorities and admitted guilt to a money laundering charge last year. Furthermore, Binance committed to ongoing monitoring to enhance its capabilities in identifying and reporting suspicious transactions, as per the settlement reached with United States Financial Crimes Enforcement Network.
Backlash Against Privacy Coins
According to Rainey Reitman, a civil liberties advocate at the Filecoin Foundation for the Decentralized Web, such a development could signify a broader backlash against privacy coins. Thus, Binance’s decision to delist Monero could be viewed as a setback for endeavors to establish a genuinely private financial network supported by cryptocurrency.
If cryptocurrency exchanges are choosing to list only those coins they believe can be monitored for suspicious activity, it raises a compelling argument that the cryptocurrency market may not be significantly different from the state it was in 2008. This aligns with the vision outlined in the Bitcoin white paper, which envisioned a world operating without the need for traditional financial institutions.
The recent decision from Binance to delist Monero generated controversy within the cryptocurrency sector, promping reevaluation of privacy within the evolving landscape of cryptocurrency exchanges.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
