Ad
News
Binance shakes privacy coin market with possible Zcash and Monero delisting threats Binance shakes privacy coin market with possible Zcash and Monero delisting threats

Binance shakes privacy coin market with possible Zcash and Monero delisting threats

Privacy coins have faced increased scrutiny from regulators globally due to their perceived use in illegal activities.

Binance shakes privacy coin market with possible Zcash and Monero delisting threats

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Crypto exchange Binance said it could delist three privacy tokens, including Zcash (ZEC), Monero (XMR), and Horizen (ZEN), because they are at risk of no longer meeting its listing criteria, according to a Jan. 4 statement.

As such, the exchange placed a “Monitoring tag” on these privacy tokens and other digital assets like Aragon, Firo, Keep3rV1, MobileCoin, Reef, and Vai.

Binance’s decision, alongside the broader market drawdown, has significantly impacted these digital assets as the privacy sector is down more than 6% during the last 24 hours and by nearly 10% in the past week, according to CryptoSlate’s data.

During the past day, Monero, Zcash, and Horizen are down 5%, 12%, and 16%, respectively.

Meanwhile, Binance now requires users interested in these assets to take quizzes every 90 days to ensure they understand the inherent risks of trading them on its spot and/or Margin platforms.

Why is Binance delisting them?

Binance stated that:

“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.”

The exchange further clarified that its decision was part of a periodic project review, assessing criteria like team commitment, trading volume, network security, and liquidity.

Last year, Binance said it would delist several privacy coins in compliance with European local laws and regulations. At the time, market observers pointed out that the move was attached to the high regulatory scrutiny privacy coins have attracted globally.

OKX, another top cryptocurrency platform, revealed intentions to delist several privacy-focused cryptocurrencies, including Zcash and Monero, by Jan. 5 because they do not align with its listing criteria.

As of press time, Binance has yet to respond to CryptoSlate’s request for additional commentary.

Mentioned in this article
Posted In: , Exchanges