In an email quoted by the Reddit user, Kraken, the world’s eighth largest cryptocurrency exchange by trading volume, announced that it would remove the Privacy Coin Monero (XMR) from its list in accordance with UK regulations. The platform will cease all XMR trading activity, set the XMR wallet to only make withdrawals, and force the liquidation of all existing XMR margin positions after November 26th.
Using advanced cryptography, privacy coins like Monero obscure participants’ public wallet addresses and payment amounts when their transactions appear on the blockchain, making it unlikely, given the current context, for legal entities like Chainalytics to digitally track the identity of transaction parties.
The development of privacy coins like XMR has been a controversial topic. Proponents claim that they offer users more privacy than cryptocurrencies with a globally viewable ledger like Bitcoin (BTC), knowing that public wallet addresses and stock market transactions of individuals cannot be compared to your customer information stored on exchanges. penetrate the shroud of their identity. However, critics say that the undetectability of privacy coins makes them ideal for criminals to use, for example for drug trafficking, drug trafficking, tax evasion or money laundering.
As a result, security coins are being scrutinized closely by cryptocurrency exchanges around the world. Last year, Coinbase refused to list XMR, citing regulatory concerns. At the beginning of January, Bittrex delisted XMR and the leading privacy coins Zcash (ZEC) and Sprint. Riccardo Spagni, a former supervisor of XMR, was arrested in the United States in July between 2009 and 2011 at the request of the South African government, and subsequently arrested for fraud in that country. .
Despite the growing backlash from centralized financial institutions and regulators against privacy coins, they continue to gain interest among crypto users. According to CoinGecko, the total market capitalization of all privacy coins is now almost $ 15 billion.