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Binance Blocks Privacy Crypto Trading In France, Italy, Poland, And Spain

anushsamal 2023-06-01 23:45

Cryptocurrency exchange Binance has decided to delist privacy coins in certain countries. The measure will take effect on June 26, explicitly impacting France, Italy, Poland, and Spain. As a result, 12 privacy coins will be affected, including Decred, Dash, Zcash, Horizen, PIVX, Navcoin, Secret, Verge, Firo, Beam, Monero, and MobileCoin.

These coins will no longer be available for trading on the Binance platform in the mentioned countries. Binance has emailed its customers in France, Spain, Italy, and Poland, notifying them of the exchange’s decision to remove the privacy coins from the market.

In the email sent, Binance mentioned that they could not offer these privacy-enhanced cryptos in compliance with local regulatory requirements.

Privacy coins belong to a specific category of cryptocurrencies that aim to enhance transaction privacy by utilizing technologies like zero-knowledge proofs. These technologies effectively conceal transaction details, making tracing and identifying the sender, recipient, and transaction amounts challenging.

By implementing such measures, privacy coins provide users with increased anonymity and make it harder for external parties to track and monitor their transactions.

A representative of Binance stated:

While we aim to support as many quality projects as possible, we are required to follow local laws and regulations regarding the trading of privacy coins, to ensure we can continue to serve as many users as we can.

The prominent privacy coins recently witnessed a 3.2% decrease in value compared to the U.S. dollar. The collective market capitalization of all existing privacy coins amounts to approximately $5.73 billion. Monero (XMR) holds the top position among these coins.

EU Opposes Privacy-Focused Cryptocurrencies And Tools

The European Union has been taking measures to tackle the issue of money laundering risks linked to anonymous cryptocurrency transactions. In response to these concerns, the EU is contemplating implementing new regulations that could prohibit privacy coins.

Today, the European Banking Authority (EBA) released draft guidance advising crypto companies to remain vigilant for customers engaging in transactions involving privacy coins. The aim is to assist these companies in identifying potential instances of money laundering activities.

The global stance on privacy-oriented cryptocurrencies and other tools designed to enhance crypto privacy has been marked by significant resistance from governments worldwide. Concerns over potential money laundering activities and the financing of terrorism have been key factors driving this opposition.

For example, in September 2022, a major cryptocurrency exchange, Huobi, stopped supporting seven privacy coins, including Monero.

Mounting regulatory pressures prompted this move. Similarly, authorities in the United States previously imposed sanctions on using a cryptocurrency mixer, Tornado Cash, due to concerns regarding its alleged capacity to allow criminals to launder funds.

Cryptocurrency exchanges in South Korea and other Asian countries have also delisted top privacy coins due to regulatory concerns. This trend emerged in Japan in 2018 and spread across the region in 2019.