Binance, the world’s largest crypto exchange by trading volume, has announced their plan to delist several privacy-focused coins for users in Spain, France, Italy, and Poland. The coins that will be delisted are designed to make it difficult for third-parties to trace transactions and get information about wallet balances. These coins include Zcash (ZEC), Monero (XMR), Decred (DCR), Horizen (ZEN), Verge (XVG), Dash (DASH), Secret (SCRT), Firo (FRO), Navcoin (NAV), PIVX (PIVX), Mobilecoin (MOB), and BEAM (BEAM). Starting from June 26, 2023, these coins will no longer be available for trading for users from the four countries.
What Does This Mean for French Binance Users?
In an email sent out to French Binance users, the exchange stated that it would no longer offer the coins for trading due to local regulations. Screenshots posted on Twitter revealed that the exchange was halting the availability of these coins for trading in France, as well as the other three aforementioned countries.
Why is This Happening?
It is unclear whether the delisting is related to the implementation of the EU’s new MiCA regulatory framework for crypto, which was signed into law on Wednesday. It is also unclear whether this will affect users from more European countries later. However, in the past, Binance CEO Changpeng Zhao has said his exchange will make the necessary adjustments “to be in a position of full compliance” with MiCA by the time the law enters into effect.
What Is the Reason Behind This Delisting?
Privacy coins have long been under pressure from governments and regulators around the world who fear that they can be used for various illicit purposes. As recently as February this year, Dubai’s virtual asset regulator banned the use of all “Anonymity-Enhanced Cryptocurrencies,” including popular coins like Monero and Zcash, within the emirate.
Binance’s plan to delist privacy-focused coins for users in four European countries has caused speculation about the reasons behind the delisting. While it is unclear whether this is related to the EU’s new MiCA regulatory framework for crypto, the delisting reflects the growing concern around privacy coins and their potential use for illicit purposes.