Privacy Coins Face Pressure as Kraken Delists Monero in Europe

Kraken, a U.S.-based cryptocurrency exchange, has announced plans to delist Monero (XMR) for clients in the European Economic Area (EEA) due to recent regulatory changes. Starting October 31, all Monero trading and deposits for users in this region will end.

In its blog post, Kraken specified that trading for XMR markets like XMR/USD and XMR/EUR will stop at 15:00 PM UTC on October 31. Open orders will automatically be closed at that time. Users will have until December 31 to withdraw their Monero balances. After this date, any remaining XMR will be converted to Bitcoin (BTC) at market value, with final distributions set for January 6, 2025.

This decision follows increasing regulatory scrutiny on privacy coins, which offer enhanced anonymity in transactions. Privacy-focused cryptocurrencies like Monero have faced growing pressure globally due to concerns about money laundering and illicit activities. Kraken emphasized that this decision aligns with its commitment to compliance and regulatory obligations. The exchange remains focused on offering a wide range of digital assets, but also must adhere to regulations. Previously, in June, Kraken had already ceased XMR support for customers in Belgium and Ireland.

Kraken’s move reflects a broader trend seen across major crypto exchanges. Binance and OKX have also delisted Monero and other privacy coins amid tightening regulations. The upcoming Markets in Crypto Assets (MiCA) legislation, set to take effect in December, along with new anti-money laundering laws, has pushed crypto service providers to reconsider support for privacy-focused tokens.

Privacy coins, despite offering enhanced security and anonymity, have found themselves in the crosshairs of regulators. The growing emphasis on transparency and accountability in the crypto space is making it difficult for exchanges to support these digital assets while remaining compliant.