Kraken Delisting Monero: XMR Price Drops Amid Heightened Regulatory Pressure on Privacy Coins
- Kraken, a renowned cryptocurrency exchange, is set to delist Monero (XMR) for European users citing regulatory mandates.
- This move underscores the mounting regulatory pressures on privacy-focused cryptocurrencies worldwide.
- Legal issues faced by key figures in privacy tech, including the conviction of a Tornado Cash developer, highlight the increasing legal challenges in the space.
Discover the latest developments in the cryptocurrency world as Kraken delists Monero in Europe amid rising regulatory scrutiny.
Kraken Delists Monero, Europe’s Regulatory Pressure Intensifies
In a significant development, Kraken announced it will delist Monero (XMR) in the European Economic Area by the end of October 2023. This decision comes as a result of stringent regulatory requirements aimed at privacy coins. As per their statement, trading and deposits of XMR will cease on October 31st, with users having until December 31st to withdraw their holdings before automatic conversion to BTC at market rates. This announcement had an immediate impact, with Monero’s price declining by over 7%.
Increasing Regulatory Scrutiny on Privacy Coins
The delisting from Kraken isn’t an isolated event; it mirrors a broader trend seen across the cryptocurrency landscape. Earlier this year, Binance also removed Monero amid mounting regulatory pressures. These actions point to a persistent regulatory scrutiny on privacy-centric digital assets like Monero, Zcash, and Horizen. These coins have been systematically targeted, with various countries like Japan, South Korea, and more recently Dubai, instituting bans on anonymous-enhanced tokens.
Market Reactions and Price Movements
The broader market has not been kind to Monero in light of these developments. At present, XMR stands at $140.19, marking a decline of 5.82%. This price drop aligns with a downward trend identified since August, compounded by breaking through significant technical levels such as the 61.8% Fibonacci retracement at $152.83. Behavioral metrics from platforms like Coinglass show a long-to-short ratio of 0.9, indicating a prevalent bearish sentiment among traders.
Legal Setbacks for Privacy Technology: The Case of Tornado Cash
Adding another layer of complexity to the privacy tech landscape is the recent conviction of Alexey Pertsev, a developer behind the cryptocurrency mixer Tornado Cash. Tornado Cash, unlike Monero, operates by anonymizing transactions via mixers. Despite their operational differences, both face similar regulatory challenges due to their permissionless nature, which tends to bypass regulatory oversight. Pertsev’s conviction for money laundering and subsequent sentencing to over five years in prison highlight the legal risks that developers in this space increasingly face.
Conclusion
The delisting of Monero by Kraken and the subsequent market reactions underscore the evolving dynamics of regulatory pressures on privacy-centric cryptocurrencies. As institutions continue to crack down on anonymous digital assets, the landscape could see further shifts, prompting stakeholders to reassess their positions and strategies. These developments offer a glimpse into the challenging road ahead for privacy technologies in the cryptocurrency domain.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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