Binance Rescinds Decision To Remove Privacy Coins From European Market

June 26, 2023

Binance has made a decision to reverse its initial plan of delisting certain privacy coins in Europe. This change in course comes after the exchange revised its operations to align with the local regulatory requirements.

According to the developers of Verge (XVG) and Secret (SCRT) cryptocurrencies, a significant outcome was achieved. Seven privacy-focused tokens were stopped from being de-listed. These tokens, which were at risk of being removed from the listings, have been successfully retained.

A comment received from the cryptocurrency exchange on June 26 states:

After carefully considering feedback from our community and several projects, we have revised how we classify privacy coins on our platform to comply with EU-wide regulatory requirements.

The crypto exchange also mentioned that due to its status as a registered exchange in multiple European Union jurisdictions, it is obligated to comply with local regulations.

These regulations mandate that exchanges have the capability to monitor transactions involving the coins listed on their platform.

In May, Binance communicated via email to its customers in France, Italy, Spain, and Poland regarding changes to its services. The message outlined the discontinuation of trading services for 12 cryptocurrencies known for enabling anonymous transactions.

Prominent privacy coins such as Monero, Dash, and Zcash were among those affected. Additionally, lesser-known tokens like XVG and SCRT were also scheduled for delisting from the exchange’s offerings.

Following the retraction of the decision to delist privacy-focused tokens, several projects have utilized Twitter as a platform to provide reassurance to their community members.

Binance Complies As EU Sets Standards For Digital Assets

The decision to delist privacy-focused tokens came as a response to the European Union’s implementation of the Markets in Crypto Assets (MiCA) regulation.

This regulation includes the “travel rule” for crypto transactions, which requires enhanced transparency and information sharing. Consequently, there is a potential risk for firms facilitating the trading of privacy coins to be non-compliant with EU law.

EU policymakers have established clear regulations with the goal of positioning Europe as a leading hub for cryptocurrencies and digital assets. In July, the European Securities and Markets Authority (ESMA) is set to initiate a consultation process for MiCA.

These laws have an implementation timeline of 18 months to ensure full compliance and effective implementation of the regulatory framework.

Cryptocurrency companies, including Ripple, have expressed their appreciation for the regulatory clarity provided by the MiCA (Markets in Crypto Assets) regulations.

Binance’s decision to cease support for privacy coins dealt a major blow to advocates of these cryptocurrencies in Europe. Earlier, leading exchanges such as Kraken, Huobi, and Bittrex had already delisted popular privacy coins like Monero and Dash.

In other jurisdictions such as Dubai, Japan, and South Korea, authorities have taken a firm stance regarding anonymity-enhancing cryptocurrencies.

These governments have adopted a clear-cut approach by implementing strict measures to crack down on these privacy coins. Outright bans have been imposed in some cases where there has been an explicit prohibition of the trading and issuance of privacy coins.