Cryptocurrency exchange binance Decided to remove privacy coins in some countries. The measure will take effect on June 26, clearly affecting France, Italy, Poland and Spain. As a result, 12 privacy coins will be affected, including Decred, Dash, Zcash, Horizon, PIVX, Navcoin, Secret, Verge, Firo, Beam, Monero and MobileCoin.
These coins will not be available for trading on the Binance platform in the countries mentioned. Binance has sent an email to its clients in France, Spain, Italy and Poland informing them of the exchange’s decision to remove privacy coins from the market.
In the email sent, Binance stated that they cannot offer this privacy-enhanced encryption in compliance with local regulatory requirements.
Privacy coins belong to a particular class of cryptocurrency that aims to enhance the privacy of transactions through the use of technologies such as zero-knowledge proofs. These technologies effectively hide transaction details, making it difficult to track and determine the sender, recipient, and transaction amounts.
By implementing such measures, privacy coins provide users with more anonymity and make it more difficult for third parties to track and monitor their transactions.
A Binance representative said:
While we aim to support as many quality projects as possible, we are required to follow local laws and regulations regarding trading privacy coins, to ensure we continue to serve as many users as possible.
Notable privacy coins have recently seen their value drop by 3.2% compared to the US dollar. The collective market capitalization of all current privacy coins is about $5.73 billion. Monero (XMR) ranks first among these currencies.
The European Union opposes cryptocurrencies and tools that focus on privacy
The European Union is taking measures to address the problem of money laundering risks associated with anonymous cryptocurrency transactions. In response to these concerns, the European Union is considering implementing new regulations that could ban privacy coins.
Today, the European Banking Authority (EBA) released draft guidance advising crypto companies to remain vigilant for customers who engage in transactions involving privacy-related currencies. The aim is to assist these companies in identifying potential cases of money laundering activities.
The global stance towards privacy-oriented cryptocurrencies and other tools designed to promote crypto privacy has been marked by significant resistance from governments around the world. Concerns about potential money laundering and terrorist financing activities were major factors behind this opposition.
For example, in September 2022, the major cryptocurrency exchange, Huobi, stopped supporting seven privacy coins, including Monero.
Increasing regulatory pressure prompted this move. Similarly, authorities in the US previously sanctioned the use of a cryptocurrency mixer, Tornado Cash, due to concerns about its alleged ability to allow criminals to launder money.
Cryptocurrency exchanges in South Korea and other Asian countries have also delisted coins with higher privacy due to regulatory concerns. This trend appeared in Japan in 2018 and spread across the region in 2019.
Featured image from UnSplash, chart from TradingView.com