Leading crypto exchange Kraken announced that it will end support for Monero in the European Economic Area. The altcoin price fell after Kraken announced that it would stop supporting the privacy-focused cryptocurrency.
Kraken is delisting the token of its privacy-focused altcoin project!
Crypto exchange Kraken will end its support for privacy token Monero in the European Economic Area (EEA). Kraken announced that it will cease trading and deposits for all Monero (XMR) markets in the EEA starting October 31, 2024. This includes transaction pairs with US dollar, euro, Bitcoin (BTC) and Tether (USDT). The exchange cited regulatory and compliance obligations as the reason for discontinuing support for XMR. In this context, Kraken made the following statement:
After a thorough evaluation and investigation of all viable alternatives, we have concluded that we have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.
With the latest development, Kraken will stop trading and deposits for XMR. However, users have until December 31 to withdraw their tokens. If users do not withdraw their XMR tokens by the deadline, Kraken will convert them to BTC. It will distribute the converted tokens on January 6, 2025.
Altcoin price dropped sharply after Delist news!
XMR’s decline deepened after Kraken’s announcement. The token price dropped from $154 to $140 during the day. At the time of writing, the altcoin price has seen a decline of more than 6.5% on its daily chart. Additionally, the token lost approximately 16% of its value on its weekly chart.
The delisting significantly affected the price of Monero. However, the broader crypto market cap has also taken a hit over the past 24 hours. During this period, the overall market value fell by 5.1%.
New regulations ban the use of privacy tokens
The decision follows regulatory developments in the European Union that ban cryptoasset service providers (CASPs) from using privacy-focused tokens like Monero or providing accounts for anonymous users. cryptokoin.comAs you follow from, earlier this year Kraken stopped trading XMR in Ireland and Belgium. On April 11, the exchange warned its users to close their positions in XMR or have them automatically closed. In 2021, Kraken discontinued support for Monero for customers in the United Kingdom.
Other jurisdictions have also cracked down on privacy-focused tokens. Japan introduced a ban on anonymity-enhanced tokens in 2018. South Korea also banned privacy tokens from trading platforms in 2020, and Australian exchanges began to delist privacy tokens due to new regulations. On February 7, 2023, Dubai banned all activities related to the issuance of privacy coins and anonymity-enhanced tokens.
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