Binance Set To Delist Monero Among Other Alt Coins
Binance, a leading cryptocurrency exchange, has announced that effective February 20th, 2024, it will be delisting several altcoins from its platform. This decision follows a lawsuit from the United States Securities and Exchange Commission (SEC), which has clarified which specific coins are affected. Among those being removed are Aragon (ANT), Multichain (MULTI), Vai (VAI), with Monero (XMR) being the largest and most notable.
The Unique Case of Monero
Monero stands out among these altcoins. While the precise reasons for its delisting are not disclosed, some news outlets, including The Crypto Potato, speculate that the primary concern is the coin’s emphasis on anonymity. This feature of Monero has unfortunately been linked to illegal activities, such as money laundering, ransomware, darknet market transactions, and other forms of organized crime. This despite a growing number of reports showing that less than one percent of all crypto transactions are used for illicit activity. Unlike many cryptocurrencies that are recorded on the blockchain, Monero offers privatized and anonymous transactions, posing challenges in tracking and regulating its use. In response to increasing regulatory scrutiny in crypto trading, many major crypto exchanges are moving away from altcoins that pose legal risks.
A Familiar Pattern in Crypto Regulation
For those closely monitoring crypto regulations and related lawsuits, this situation may seem familiar. It echoes a similar lawsuit filed against Kraken in November 2023. The SEC appears to be doubling down on stringent regulations and policies concerning crypto exchanges and currencies they see as securities. It is always disheartening to witness large crypto exchanges like Binance and Kraken facing challenges, especially in the past four months alone. Unfortunately, the harsh reality is that, for the foreseeable future, crypto exchanges will need to adapt to comply with evolving regulations if they want to stay in business.