In a recent statement, cryptocurrency exchange Binance announced its consideration to delist three major privacy tokens: Zcash (ZEC), Monero (XMR), and Horizen (ZEN). Binance justified this move by stating that these assets are no longer meeting its listing criteria. In addition to the aforementioned tokens, Binance also placed a “Monitoring tag” on other digital assets such as Aragon, Firo, Keep3rV1, MobileCoin, Reef, and Vai.
Binance’s decision has had a significant impact on the privacy sector of the crypto market, leading to a downturn of over 6% in the last 24 hours and nearly 10% in the past week, as reported by CryptoSlate’s data. Specifically, Monero, Zcash, and Horizen have experienced price drops of 5%, 12%, and 16%, respectively. This downward trend can be attributed to the increased uncertainties surrounding the future trading of these tokens on Binance and potentially other exchanges.
To mitigate potential risks associated with these privacy tokens, Binance has introduced a new requirement for users. Those interested in trading these assets on Binance’s spot and/or Margin platforms will now be required to take quizzes every 90 days. The purpose of these quizzes is to ensure that users fully understand the risks and volatility associated with trading these tokens. Binance has explicitly stated that tokens with the “Monitoring tag” are subject to higher volatility and risk compared to other listed tokens.
The delisting decision made by Binance is part of its periodic project review process, in which the exchange assesses various criteria. These criteria include team commitment, trading volume, network security, and liquidity. Binance aims to maintain a high level of quality and compliance within its listed assets and, therefore, regularly evaluates tokens’ adherence to its listing requirements.
Binance’s move to delist certain privacy coins aligns with a broader industry trend. Last year, the exchange announced its intention to delist several privacy coins in compliance with European local laws and regulations. This highlights the growing regulatory scrutiny surrounding privacy-focused cryptocurrencies on a global scale. Other major cryptocurrency platforms, such as OKX, have also expressed intentions to delist privacy-focused tokens, including Zcash and Monero, due to misalignment with their respective listing criteria.
The delisting of privacy tokens by Binance has stirred up significant market reactions, leading to price drops and increased uncertainties. Binance’s decision reflects its commitment to maintaining a high-quality listing and compliance standard for cryptocurrencies traded on its platform. As the regulatory landscape continues to evolve, the future of privacy-focused cryptocurrencies remains uncertain. However, it is clear that these tokens face increasing scrutiny and challenges in meeting the strict requirements set by major cryptocurrency exchanges.