Binance Flags Privacy Coins for Delisting: Monero, Zcash, and Others on the Watchlist

In a recent announcement, Binance, the world’s leading cryptocurrency exchange, has raised concerns about the fate of privacy coins, including Monero, Zcash, and more. The platform has introduced a “monitoring tag” for a list of cryptocurrencies, indicating a higher level of volatility and risk. This move signifies that these tokens may no longer meet Binance’s stringent listing criteria, potentially leading to their delisting from the exchange.

Privacy-focused cryptocurrencies, such as Monero (XMR), Zcash (ZEC), and Horizen (ZEN), have been marked with the monitoring tag, drawing attention to the increased regulatory scrutiny facing these projects. Binance emphasized that tokens with the monitoring tag will undergo regular reviews, and users aiming to trade them must pass quizzes every 90 days to ensure awareness of associated risks.

This development is part of Binance’s ongoing efforts to maintain compliance and transparency in the evolving regulatory landscape. The exchange has faced challenges in listing privacy coins, with previous instances of delisting in specific regions due to regulatory obligations.

The move to monitor these tokens closely comes after Binance’s multi-billion-dollar settlement with the U.S. Department of Justice (DOJ) and other U.S. government agencies. The settlement has subjected Binance to rigorous monitoring, including compliance with regulatory requests for information and the retroactive filing of suspicious activity reports (SARs) on transactions dating back to 2018.

Reuben Yap, co-founder of Firo, one of the privacy coins affected, mentioned that the monitoring tag is a response to increased regulatory pressure, including initiatives like MiCA and recent U.S. regulatory actions. However, Yap highlighted ongoing discussions with Binance since September 2023, expressing optimism about finding mutually beneficial solutions.

It’s essential to note that this move by Binance aligns with a broader trend in the cryptocurrency industry, where privacy coins have faced increased scrutiny from regulators and law enforcement. Privacy coins like Monero have been a focal point for regulatory attention due to their ability to facilitate anonymous transactions.

While the monitoring tag introduces uncertainties for the future of these privacy coins on Binance, the exchange’s commitment to ongoing reviews suggests a dynamic approach. Binance will assess factors such as team commitment, development activity, trading volume, and contribution to a healthy crypto ecosystem during its periodic project reviews.