In a surprising turn of events, Binance has decided to reverse its decision made in May to delist some privacy coins in certain EU nations, according to an official statement provided to Blockworks. The world’s largest cryptocurrency exchange initially intended to restrict access to 12 privacy coins, such as DASH, XMR, ZEC, and others, for customers in France, Spain, Italy, and Poland.
As per the statement, Binance has reevaluated its stance on privacy coins in light of EU regulatory requirements, stating that it has revised the classification of privacy coins on its platform for compliance with EU-wide regulations. This means that, as a cryptocurrency exchange with registrations in numerous EU jurisdictions, Binance must follow the regulations which require exchanges to be able to monitor transactions for coins listed on their platforms.
Binance’s change of heart might raise some eyebrows, as the exchange has demonstrated a pattern of reversing its token listing plans in the past. For instance, on June 7, Binance announced its decision to scrap dozens of tether (USDT) trading pairs from its advanced trading platform, only to walk back on that decision later the same day.
The news of Binance retaining privacy coins on its platform comes months after Huobi Global opted to delist seven privacy coins, including XMR, DASH, and ZEC. The treatment of privacy coins by other cryptocurrency exchanges has varied greatly. In the United States, for example, though users can buy Monero on Kraken, they cannot do so on Coinbase, which has never listed the token due to regulatory concerns, as mentioned by CEO Brian Armstrong in 2020. Interestingly, both Coinbase and Kraken support Zcash, as per CoinGecko data.
Asian countries are known for taking a harsh stance on privacy coins, with Japan and South Korea banning them outright. The back-and-forth nature of Binance’s approach to privacy coins raises questions regarding the exchange’s decision-making process and response to regulatory requirements, as well as how this might affect the trading of privacy coins across the industry. While the decision to keep privacy coins listed on Binance may be a relief for some traders and privacy-focused projects, it is crucial to remain aware of the ever-changing regulatory landscape in the world of cryptocurrencies and the potential implications for the future of privacy coins.
Source: Blockworks
