Binance removes Monero (XMR) from its trading platform. The reason is, Monero, which focuses on privacy, has the ability to hide the identities of senders and recipients and the number of transactions. However, this feature also raises legal and regulatory issues, as it can be exploited for illegal activities such as money laundering, tax evasion, and terrorism financing.
For this reason, Binance, the world's largest cryptocurrency exchange by daily trading volume, decided to remove Monero from their trading list. Not only XMR was removed, a number of other crypto assets were also exposed to sap. Similar to XMR, Binance delisted several other tokens such as Aragon (ANT), Multichain (MULTI), and Vai (VAI). This decision is effective from February 20, 2024, and was announced through Binance's official website.
How Monero (XMR) Works
Monero (XMR) is a privacy-focused cryptocurrency, launched in April 2014. XMR is designed to hide the identities of the sender and receiver as well as the number of transactions, providing a higher level of anonymity than other cryptocurrencies such as Bitcoin.
The technology XMR uses to achieve this privacy is called "Ring Confidential Transactions" (RingCT). RingCT combines user transactions with randomly selected "dummy" transactions, making it difficult to trace the origin and destination of funds.
XMR's privacy features make it attractive to users who want to keep their finances private, such as political activists, journalists, and harassment victims. However, this feature also raises concerns for regulators and law enforcement, as it can be used for illegal activities such as money laundering, tax evasion, and terrorism financing.
As a result, XMR has faced various regulatory hurdles, including delisting from several cryptocurrency exchanges. In February 2024, Binance, the world's largest cryptocurrency exchange, removed XMR from its trading list, leading to a significant drop in the price of XMR.
Reasons Binance Delisted Monero (XMR)
Binance said that this step was taken to improve their security and compliance standards, as well as to protect the interests of their users. Binance also appealed to investors to withdraw affected tokens before May 20, 2024, and provided a step-by-step guide to the withdrawal process.
Binance's announcement had a major impact on Monero's market value, which fell by about 30% in a day, and reached its lowest level since June 2022. According to data from CoinMarketCap, the current price of XMR is around $120, with a market cap of around $2.2 billion. Monero is now ranked 47th on the list of largest cryptocurrencies.
In addition to Monero, other tokens delisted by Binance also saw their prices dropped. Multichain, for example, fell 36% after a hacker attack drained about $1.5 million from their wallets. Meanwhile, Aragon and Vai did not experience significant changes, due to lack of interest and trading volume.
Developers Must Follow Policies and Regulations
This incident shows how important the role of cryptocurrency exchanges is in determining the fate of crypto projects, especially those that are still new and unproven. Cryptocurrency exchanges not only provide access and liquidity for investors, but also affect the reputation and credibility of crypto projects.
Therefore, cryptocurrency developers and users should always keep abreast of the policies and regulations applicable in the sector, as well as choose a trusted and professional cryptocurrency exchange. In addition, investors should also be careful in choosing the cryptocurrency they want to invest in, and consider the risks and potential involved.
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Also Read:
Binance's New CEO and Impact on the Crypto Market
Get to know Monero (XMR): A Digital Currency with a High Level of Security
Zcash (ZEC): A Cryptocurrency That Offers Advanced Privacy
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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