In a recent statement, leading cryptocurrency exchange Binance announced that it is considering delisting three privacy tokens, namely Zcash (ZEC), Monero (XMR), and Horizen (ZEN). The exchange displayed a “Monitoring tag” on these tokens, along with other digital assets such as Aragon, Firo, Keep3rV1, MobileCoin, Reef, and Vai. The decision made by Binance, coupled with the overall market downturn, has had a significant impact on the privacy sector, with a decline of over 6% in the past 24 hours and nearly 10% over the last week, according to CryptoSlate’s data.
Binance now requires users interested in trading these privacy tokens to take quizzes every 90 days. This measure aims to ensure that traders understand the associated risks of engaging with these assets on Binance’s spot and/or margin platforms. The exchange emphasized that tokens with the “Monitoring Tag” exhibit higher volatility and risks compared to other listed tokens. Consequently, these tokens undergo regular reviews and are closely monitored. However, there is a possibility that they may no longer meet Binance’s listing criteria and could be delisted from the platform.
Binance clarified that this action is part of its periodic project review, which evaluates criteria such as team commitment, trading volume, network security, and liquidity. This move aligns with Binance’s commitment to ensuring the quality and compliance of its listed tokens. It is worth noting that the exchange previously expressed its intention to delist several privacy coins in order to adhere to European local laws and regulations. This decision was in response to the increased regulatory scrutiny that privacy coins have faced globally.
Binance is not the only major cryptocurrency platform taking measures against privacy-focused cryptocurrencies. OKX, another prominent exchange, has announced its plans to delist privacy tokens including Zcash and Monero by January 5, as these tokens do not align with the platform’s listing criteria. The actions taken by Binance and OKX reflect a trend in the industry, where exchanges are becoming more selective and cautious when it comes to listing privacy-focused assets.
The delisting consideration by Binance has already had a substantial impact on privacy tokens. Within the past day, Monero, Zcash, and Horizen have seen price drops of 5%, 12%, and 16% respectively. These significant declines highlight how market sentiment can shift based on the actions and decisions of major exchanges. Privacy tokens, which have gained attention due to their enhanced privacy features, now face increased scrutiny and potential challenges in terms of trading liquidity and market recognition.
The delisting of privacy tokens like Zcash, Monero, and Horizen by Binance sheds light on the evolving landscape of the cryptocurrency industry. Exchanges are reevaluating their listing criteria and weighing the risks associated with privacy-focused assets. While regulatory compliance is a driving factor, the impact of delisting decisions on the market and the future of these privacy tokens remains uncertain. Traders and investors are advised to stay informed and carefully consider the risks associated with trading these assets on major platforms.
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