Highlights:
- Kraken to delist Monero in the EEA due to regulatory changes, halting trading and deposits by October 31, 2024.
- Users can withdraw Monero until December 31, while the remaining balances will convert to Bitcoin at market rates.
- Regulatory pressures, including the upcoming MiCA Act, prompt exchanges to remove privacy coins like Monero.
Kraken, a leading exchange, will delist Monero (XMR) for users in the European Economic Area (EEA). According to the announcement, the trading and deposits for Monero will cease on October 31, 2024, at 15:00 UTC. This move reflects increasing regulatory scrutiny on privacy-focused cryptocurrencies.
KRAKEN TO DELIST MONERO FOR EUROPEAN CLIENTS
Kraken is ditching Monero (XMR) for users in the European Economic Area, shutting down trading and deposits by October 31.
You’ve got until December 31 to grab your XMR before it gets swapped for Bitcoin.
This isn’t just… pic.twitter.com/ddA2o2N2Xb
— Mario Nawfal’s Roundtable (@RoundtableSpace) October 2, 2024
Monero Trading and Deposits to Cease by October 31
Kraken will discontinue all XMR trading pairs for EEA users. This includes XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT. Kraken will automatically close any open orders at the deadline. The exchange urges clients to act before the cutoff date. By halting trading and deposits, Kraken aligns with regulatory changes. These aim to enhance transparency in cryptocurrency transactions.
Privacy coins like Monero offer enhanced anonymity, attracting regulatory attention. Exchanges are under pressure to comply with new rules that limit such cryptocurrencies. The exchange notified users, saying, “We have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.” Kraken assured clients it remains committed to providing an exceptional trading experience.
Withdrawal Deadline Set for December 31
EEA users have until December 31, 2024, at 15:00 UTC, to withdraw their Monero holdings. After this date, Kraken will automatically convert any remaining XMR balances to Bitcoin (BTC) at the prevailing market rate. Furthermore, the exchange plans to distribute the converted BTC to affected users by January 6, 2025. Kraken emphasized its commitment to providing an exceptional trading experience while navigating regulatory challenges.
Clients should withdraw their Monero before the deadline to retain control over their assets. The automatic conversion to Bitcoin changes the nature of their investment, so users should plan accordingly.
Impact on Privacy Coins
Privacy coins like Monero face increased challenges as regulators tighten controls. Exchanges such as Binance and OKX have also delisted privacy-focused cryptocurrencies. The European Union’s new anti-money laundering regulations specifically target privacy coins, making it difficult for exchanges to support them.
Kraken had previously delisted Monero in Belgium and Ireland in June. The current decision extends the delisting to the entire EEA. This action underscores the difficulty of maintaining listings on major exchanges for privacy coins.
Regulatory Pressures and MiCA Implementation
This move is part of a broader trend of exchanges delisting privacy coins like Monero, which offer enhanced transaction anonymity. Consequently, regulators are increasing pressure due to concerns over money laundering. The upcoming implementation of the Markets in Crypto-Assets (MiCA) Act is significant.
MiCA introduces stringent regulations for Crypto Asset Service Providers (CASPs), including prohibitions on offering privacy coins. Additionally, the European Securities and Markets Authority (ESMA) has released draft guidelines on the qualification of crypto-assets as financial instruments, with final guidelines expected in December.
These developments aim to combat illicit activities by increasing transparency. However, they challenge privacy-focused cryptocurrencies like Monero. Consequently, exchanges like Kraken are adjusting offerings to remain compliant.
Despite regulatory challenges, Kraken continues to expand in Europe. Recently, the exchange acquired Coin Meester (BCM), a Dutch crypto brokerage firm. This acquisition strengthens Kraken’s position in the Dutch market. Furthermore, it secures Virtual Asset Service Provider (VASP) licenses in France and Poland.