Binance’s recent announcement to delist certain privacy coins, including Secret (SCRT), Zcash (ZEC), and Dash (DASH), has caused backlash from the three projects. In response to the move, a representative from Dash argued that their network is not focused on privacy and that it is simply a fork of Bitcoin. They explained that all transactions on the Dash network are transparent and auditable on its blockchain, making it more transparent than Bitcoin. While Dash does have an optional non-custodial Coinjoin feature, it only accounts for 0.4% of its transactions. The representative added that they would attempt to work with Binance to relist the token and provide more education on the facts.
SCRT Labs CEO clarifies the nature of Secret Network
SCRT Labs CEO Guy Zyskind clarified that Secret (SCRT) is not a privacy coin and that transactions on the network are public. However, the data within the smart contracts on the network is confidential, making it more appropriate for GDPR-type applications in the blockchain setting. Zyskind noted that privacy is essential for Web3 to gain traction in mainstream markets, despite the networks facing extreme scrutiny. SCRT Labs has reached out to Binance to clarify any misunderstandings surrounding the labeling of its token.
Zcash developer suspects regulatory pressure
Electric Coin Co., the company leading the development of Zcash, suspects that Binance’s decision to delist its token is due to regulatory pressure from the European Union and the formal signing of the Markets in Crypto Assets (MiCA) regulation. The company argues that MiCA’s language is vague and applies to several companies, decentralized organizations, cryptocurrencies, and applications. They added that to their knowledge, Zcash complies with all other laws and regulations in the EU, including the Travel Rule and the Fifth Anti-Money Laundering Directive. Electric Coin Co. believes that Binance’s decision poses a direct and imminent threat to the privacy and security of individuals, families, businesses, communities, and entire nations.
Binance’s decision to delist certain privacy coins has caused reactions from the projects affected. While Dash argues against its privacy labeling, Secret Network clarifies that it is not a privacy coin, and Zcash suspects regulatory pressure from the EU. The moves by Binance indicate that regulatory compliance is becoming a more significant concern for exchanges in the crypto industry.