Binance to Monitor Privacy Coins for Potential Delisting
Binance, the largest cryptocurrency exchange, has recently announced that it will start monitoring ten new cryptocurrency projects, including privacy blockchains like Monero, Firo, Mobilecoin, and Zcash. This move suggests that Binance may consider delisting privacy coins in the future if they fail to meet the exchange’s criteria for continued trading on its platform.
The Risk of Delisting for Monero and Zcash
In a recent announcement, Binance revealed that it has assigned a monitoring tag to these privacy-focused projects due to their higher volatility and risks compared to other tokens. Binance employees will closely review these assets. It’s important to note that tokens with the monitoring tag are at risk of being delisted from the platform if they no longer meet the exchange’s listing criteria.
User Quiz and Criticism
Binance also stated that users interested in trading these privacy coins will need to pass a quiz every 90 days to ensure they understand the associated risks. Binance’s approach to privacy coins has faced criticism in the past, with calls for the exchange to support these projects. Former Monero lead maintainer Ricardo Spagni argued that not doing so would be a disservice to the crypto industry.
Regulatory Pressure and Delisting Trend
Binance’s actions regarding privacy projects may be driven by increasing regulatory pressure. The exchange reached a $4.3 billion settlement with the U.S. Department of Justice and other government agencies last year. Analysts believe this settlement has influenced Binance’s decision, along with other exchanges like Okx, which also plans to delist privacy coins such as Monero, Zcash, and Dash after January 5.
Hot Take: Binance’s Monitoring Approach to Privacy Coins
Binance’s new monitoring of privacy coins, including Monero and Zcash, raises concerns about the future trading status of these assets. By closely reviewing and potentially delisting privacy coins, Binance aims to address the higher volatility and risks associated with these tokens. However, this approach has faced criticism, with calls for Binance to support privacy projects. It remains to be seen how Binance’s actions will impact the larger cryptocurrency market and if other exchanges will follow suit in delisting privacy coins.
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