While speculative joke coins such as Shiba Inu and Floki Inu are being listed by top exchanges, others are being delisted due to security and compliance concerns. Kraken, the world’s eighth-largest cryptocurrency exchange, has dropped Monero, the leading privacy coin. The reason for the delisting was cited as regulatory compliance.
Reddit users shared an email from Kraken in which they announced their decision to discontinue offering Monero’s XMR token to British customers. This was done in order to comply with British regulations. As a result, the exchange will suspend all XMR trading activities after November 26. Deposits to XMR wallets will also be disabled, and any existing XMR margin positions will be liquidated.
Privacy or deception?
Monero’s problem stems from its classification as a privacy coin. It employs advanced cryptographic techniques to erase all traces of a transaction from the blockchain ledger. Important information such as wallet addresses, transaction amounts, and dates are obscured, and important KYC information stored on exchanges is avoided. Because of their anonymity, privacy coins are particularly appealing to cybercriminals and others attempting to conceal their financial activities.
Monero’s public image has often been tarnished for this reason, as it is still perceived as a tool for cybercrime and the dark web. It is thought to be used in drug trafficking, tax evasion, and money laundering schemes. It has also emerged as a preferred method of collecting funding for many alt-right and white supremacists.
Monero has come under increased scrutiny and criticism in recent years due to its association with the dark web and cybercrime. Bittrex delisted Monero, along with Zcash and Dash, late last year in order to comply with global anti-terror and money-laundering regulations. Coinbase CEO Brian Armstrong had previously declined to list privacy coins such as Monero, citing regulatory uncertainty.
Despite the boycott, privacy tokens have continued to gain popularity among cryptocurrency users, with a total market capitalization of more than $15 billion. Monero’s valuation has increased by 109 percent in the last year, with daily transactions reaching an all-time high just last week. This clearly demonstrated its long-term popularity among investors seeking financial privacy.