Kraken to remove Monero from list, cites UK regulatory compliance concerns
In an age when speculative coins like Shiba Inu and Floki Inu are listed by top exchanges, others are being written off for security and compliance concerns. The eighth largest cryptocurrency exchange in the world, Kraken, has ditched the main privacy coin, Monero. They cited regulatory compliance as the reason for the delisting.
Reddit users shared an email from Kraken stating their decision to no longer offer Monero’s XMR token to UK customers. This was done in order to comply with UK regulations. Therefore, all XMR trading activities will be stopped by the exchange after November 26th. Along with this, deposits on the XMR portfolios will be deactivated and all existing XMR margin positions will also be liquidated.
Privacy or fraud?
The problem with Monero stems from its categorization as a privacy coin. It uses advanced cryptographic methods to remove all traces of a transaction from the blockchain ledger. This hides important information like wallet addresses, trade amounts, and dates and bypasses important KYC information stored on the exchanges. This anonymity makes privacy coins particularly attractive to cybercriminals and others trying to cover up their financial traces.
Monero’s public image has often been slandered for the same reason, as it continues to be viewed as a medium for cybercrime and the dark web. It is seen as being used in drug trafficking, tax evasion or money laundering operations. It has also emerged as a preference for many far-right and white supremacists as a way to raise funds anonymously.
In recent years, its association with the dark web and cybercrime has led Monero to come under increased scrutiny and criticism. At the end of last year, Bittrex also had removed Monero, as well as Zcash and Dash, to comply with global anti-terrorism and money laundering guidelines. Earlier this year, Coinbase CEO Brian Armstrong also declined to list privacy coins as Monero, citing regulatory uncertainty.
Regardless of the boycott, privacy tokens continued to gain traction among cryptocurrency users, with their total market capitalization exceeding $ 15 billion. Monero itself has grown 109% in valuation over the past year, to reach a new daily trading record last week. This clearly indicated its enduring popularity among investors seeking financial privacy.