The cryptocurrency market experienced a significant event as Binance, the largest crypto exchange by trading volume, announced the delisting of Monero (XMR) and Multichain (MULTI). This decision sent shockwaves throughout the market, causing both digital assets to plummet in value. The delisting comes as no surprise given Binance’s warning about potential failure to meet listing criteria due to heightened volatility and associated risks. However, market observers speculate that the removal of Monero may be linked to Binance’s recent efforts to comply with evolving regulatory standards.
On February 6, Binance revealed that Monero (XMR) and Multichain (MULTI), alongside other digital assets such as Aragon (ANT) and Vai (VAI), would be delisted and removed from several products on its platform. Binance cited that these tokens no longer meet its listing criteria. Concerning the conversion of delisted tokens into stablecoins, Binance stated that it is not guaranteed and a separate notification would be made if applicable. This announcement sent shockwaves through the market, with XMR and MULTI experiencing a rapid decline in value.
Monero (XMR), the largest privacy-oriented blockchain network, saw a steep drop in value following Binance’s delisting announcement. XMR’s value plunged by approximately 20%, hitting a low of $136 according to CryptoSlate’s data. The market’s reaction to Monero’s delisting was expected, as privacy-focused coins have drawn regulatory attention due to concerns regarding their possible misuse in illicit activities. This has led major exchanges like OKX to delist privacy-oriented coins.
While it is no surprise that Monero (XMR) was delisted due to regulatory concerns, there are speculations as to why Binance made this decision. Some market observers believe that Binance’s move may be linked to the exchange’s efforts to comply with evolving regulatory standards. By removing Monero, Binance may be signaling its willingness to work with regulators and ensure compliance with anti-money laundering and know-your-customer requirements.
In addition to Monero, Binance also delisted Multichain (MULTI), a cross-chain protocol facilitating asset and NFT bridging across multiple blockchains. Multichain garnered attention last year when $126 million worth of funds vanished abruptly, leading to the Chinese authorities detaining its CEO. The protocol’s team subsequently ceased operations due to complaints of delayed transactions and locked funds from users. The delisting of Multichain by Binance resulted in a considerable drop in value, with MULTI’s price plummeting by around 20% to as low as $1.55.
The delisting of Monero (XMR) and Multichain (MULTI) by Binance has had a significant impact on these digital assets. The market reacted strongly to Binance’s announcement, causing XMR and MULTI to experience a steep decline in value. While the delisting of Monero may have been expected due to regulatory concerns, it also signals Binance’s willingness to comply with evolving standards. As for Multichain, its delisting can be attributed to the protocol’s previous issues with missing funds and operational difficulties. The cryptocurrency market will undoubtedly continue to face challenges as regulators prioritize ensuring compliance and minimizing risks associated with digital assets.