Binance will not be delisting privacy coins in Europe, opting instead to review asset classification in line with EU law.
binance has reviewed its decision to delist several privacy coins in Europe. The exchange will no longer delist these coins as it works to comply with regulations set forth by European authorities.
Binance will now recategorize Privacy Coins to meet regulations. In a recent comment, Binance Said,
“After careful consideration of feedback from our community and several projects, we have revised the way privacy coins are classified on our platform to comply with EU-wide regulatory requirements.”
Binance also noted that it must comply with regulations in several individual EU jurisdictions as it is registered in these locations. The exchange said that these jurisdictions have specific laws that require Binance to “monitor transactions of coins listed on our platform.”
Binance plans to delist multiple privacy coins in Europe
Last month, Binance announced it would suspend access to Privacy Coins, making them unavailable for trading in Poland, France, Spain, and Italy. At the time, Binance said at least a dozen coins would cease trading.
Dash name exchange (dash), Zcash (ZEC), BEAM, Verge (XVG), Monero (XMR), PIVX, and MobileCoin (MOB). Other named coins are Horizon (ZEN), Firo (FIRO), Decred (DCR), Navcoin (NAV), and Secret (SCRT). Binance said it made this decision “as part of Binance’s ongoing compliance processes.”
Binance’s announcement faced some resistance. For example, Guy Ziskind, co-founder and CEO of Secret Labs, said that Secret has tried to rectify the misclassification. Ziskind told decrypt Only the data contained in smart contracts is confidential, while transactions remain public. According to him, “Secret is more suited for GDPR-type applications in a blockchain setting.”
Privacy coins provide users with much more anonymity than is normally available. These coins obscure user transactions in such a way that they are nearly impossible to monitor. As a result, authorities have become quite averse to privacy coins as they believe these assets are easily used for money laundering and other illegal transactions.
EU and MiCA
In April, the E.U. pass The Markets in Crypto Assets (MiCA) Bill to regulate the digital currency sector. The Bill was first introduced in 2020 to provide much-needed clarity for Virtual Asset Service Providers (VASPs). Although there are many arguments against MiCA, privacy coins may be more affected than other types of digital assets. For example, MiCA would require exchanges to only support privacy coins if they verify a user’s identity.
The EU Parliament voted 517-38 in favor of the MiCA after several deliberations. For example, the parliament postponed the final vote for the second time due to translation issues. The postponement occurred in January after a previous delay to November 2022 as the legal document had to be translated into all 24 official languages.
With MiCA, the EU has pioneered comprehensive crypto regulations and provided clarity that may be absent in other places such as the US. Crypto firms in the US have been at loggerheads with authorities such as the SEC, which many have described as a deliberate attempt to avoid providing clarity.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip the mysteries of crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid movie lover.
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