In a move that sent shockwaves through the cryptocurrency community, Binance, one of the leading crypto exchanges, announced the delisting of Monero (XMR), a popular privacy-focused coin. Shortly after Treasury Secretary Janet Yellen’s call for cryptocurrency regulations, the decision sparked widespread speculation and criticism.
Reasons for delisting and market impact
The main reason for delisting is the discrepancy between Monero’s privacy features and Binance’s compliance requirements. Monero’s utilization of stealth addresses, which ensure transaction privacy, conflicts with Binance’s need for transparency in deposits from publicly transparent addresses.
This misalignment has led Binance to remove Monero from its list of supported cryptocurrencies, causing a significant drop in both the price and trading volume of XMR.
Following the announcement, Monero reassured its users that it remains committed to preserving privacy and security. However, the market response was swift and severe, with XMR experiencing a sharp decline of 32% in value.
As of the latest data from Coinmarketcap, Monero is trading below $115, marking its lowest point since mid-September 2023.
Community backlash and speculation
The delisting of Monero has sparked intense backlash on social media platforms like Crypto Twitter, with users, influencers, and institutions voicing their criticism of Binance’s decision. Many view the move as a capitulation to regulatory pressures, particularly in light of Binance’s previous legal troubles.
Changpeng Zhao, the former CEO of Binance, resigned and pleaded guilty to violating Anti-Money Laundering and sanctions laws in the US in late 2023. Binance is now subject to five years of surveillance, monitoring, and stringent compliance with US regulators as part of a settlement agreement.
This context has fueled speculation that the delisting of Monero may be a preemptive measure to appease regulators and avoid further scrutiny.
Binance’s response and customer concerns
In response to the delisting uproar, the Binance Customer Support team has been actively engaging with users and addressing their concerns. However, their approach of providing a single copy-pasted response for all inquiries has drawn criticism from users, who feel their individual questions are not being adequately addressed.
Despite the delisting controversy, Binance has not issued any further statements regarding its decision or plans for future compliance measures. The exchange continues to operate within the confines of its regulatory obligations, albeit under increased scrutiny and oversight.
