- Binance has implemented a “monitoring tag” on cryptocurrencies like Monero and Zcash
- This move follows regulatory pressure on exchanges offering privacy coins, citing concerns about their role in facilitating criminal activity
- Popular privacy coins face increased scrutiny as Binance takes steps to address associated risks and potential non-compliance with listing criteria
Binance has taken a further step towards banning privacy coins after applying a “monitoring tag” for a selection of cryptocurrencies. Popular coins including Monero and Zcash now have the designation, which signals higher volatility and associated risks, potentially leading to a delisting if the tokens no longer meet listing criteria. The move comes as regulators squeeze exchanges offering privacy coins, alleging that they facilitate criminal activity.
Monero and Zcash in Trouble
Binance announced yesterday that it has stuck a monitoring tag on the following 10 coins, noting that they experience “notably higher volatility and risks compared to other listed tokens”:
- Aragon (ANT)
- Firo (FIRO)
- Keep3rV1 (KP3R)
- Mdex (MDX)
- MobileCoin (MOB)
- Reef (REEF)
- Vai (VAI)
- Monero (XMR)
- Zcash (ZEC)
- Horizen (ZEN)
Users wishing to trade the tokens must now complete a quiz to confirm their understanding of the risks involved, while the coins themselves will undergo monitoring and could be delisted if they fall below Binance’s standards:
These tokens are closely monitored, with regular reviews conducted. Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.
The move reflects Binance’s ongoing efforts to navigate privacy coin listings, as witnessed in May 2023 when the exchange initially announced delisting Monero, Zcash, and Horizen in certain regions but later reconsidered some of these decisions.
Privacy Coins Face Extinction
Privacy coins have experienced a rough ride in recent years, with exchanges including Shapeshift, Bittrex, and OKX all banning them, the latter in response to a blanket ban on privacy coins by South Korean regulators.
In October 2020 Chainalysis CEO Michael Gronager said that privacy coins such as Monero and Zcash only serve “crime syndicates” and did not have a future in the digital asset space, and, indeed, with crypto regulation picking up worldwide, it seems that privacy coins, especially those dating back to the earlier days of crypto, are on a sticky wicket.
