– Binance delists Monero over dispute over privacy features; XMR price drops 32%.
The social media community is outraged by speculation that Binance has succumbed to regulatory pressure.
Despite Binance’s compliance efforts, users have criticized its strategy regarding the delisting of Monero.
One of the leading cryptocurrency exchanges, Binance, shocked the cryptocurrency community when it announced the delisting of Monero (XMR), a popular privacy-focused coin. The decision sparked widespread speculation and criticism, shortly after Treasury Secretary Janet Yellen called for regulation of cryptocurrencies.
The main reason for the delisting was a mismatch between Monero’s privacy features and Binance’s requirements: the fact that Monero uses stealth addresses to ensure transaction privacy contradicts Binance’s requirement for transparency of deposits from public addresses.
This inconsistency led Binance to remove Monero from its list of supported cryptocurrencies, causing a significant drop in the price and trading volume of XMR.
Following the announcement, Monero assured users that it remains committed to privacy and security. However, the market’s reaction was swift and harsh, with the value of XMR falling by 32%.
According to the latest Coin Market Cap, Monero is trading below $115, the lowest since mid-September 2023.
Monero’s delisting has sparked a strong reaction on social media platforms such as Crypto Twitter, where users, influencers and organizations are criticizing Binance’s decision. Many see the move as a concession to regulatory pressure, especially in light of Binance’s past legal troubles.
Former Binance CEO Changpeng Zhao resigned at the end of 2023 and admitted to violating anti-money laundering and sanctions laws in the US. Under the settlement agreement, Binance must now be supervised, monitored and strictly enforced by US regulators for five years.
This has led to speculation that the Monero delisting could be a pre-emptive measure to appease regulators and avoid further scrutiny.
Since the furor surrounding the delisting, Binance’s support team has been actively engaging with users and addressing their concerns. However, their approach of providing a single answer to all questions has been criticized by users who feel that individual concerns have not been adequately addressed.
Despite the delisting controversy, Binance has not made any further announcements about their decision or plans for future compliance measures. The exchange continues to operate within its regulatory obligations, albeit with increased scrutiny and oversight.
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