The popular cryptocurrency exchange, Binance, has announced that it may delist three privacy tokens from its platform. Zcash (ZEC), Monero (XMR), and Horizen (ZEN) are all at risk of no longer meeting Binance’s listing criteria. This move has not only affected these tokens but also impacted the wider privacy sector, which has experienced a significant decline in the last 24 hours. Binance has taken steps to educate its users about the risks associated with these assets, implementing mandatory quizzes for those interested in trading them.
In a recent statement, Binance placed a “Monitoring tag” on several digital assets, including the privacy tokens Zcash, Monero, and Horizen, along with Aragon, Firo, Keep3rV1, MobileCoin, Reef, and Vai. The exchange has recognized the higher volatility and risks associated with these tokens compared to others. Consequently, Binance is closely monitoring them and conducting regular reviews. However, there is a possibility that these tokens may be delisted from the platform if they no longer meet Binance’s listing criteria.
The announcement from Binance, coupled with the overall market downturn, has had a notable impact on the privacy sector. According to data from CryptoSlate, the privacy sector has experienced a decrease of over 6% in the last 24 hours and nearly 10% in the past week. Specifically, Monero, Zcash, and Horizen have seen significant price drops of 5%, 12%, and 16% respectively in just one day.
To ensure users understand the risks associated with trading these privacy tokens, Binance has implemented a new requirement. Users interested in these assets must now complete quizzes every 90 days. This additional measure aims to enhance user knowledge about the inherent risks of trading these tokens on Binance’s spot and/or Margin platforms.
It is worth noting that Binance’s decision to delist these tokens is part of a periodic project review. The review process evaluates various criteria such as team commitment, trading volume, network security, and liquidity. Last year, Binance also announced the delisting of several privacy coins in compliance with local laws and regulations in Europe. This move aligns with the increasing regulatory scrutiny that privacy coins have been facing on a global scale.
Binance is not the only major cryptocurrency platform considering the delisting of privacy-focused cryptocurrencies. OKX, another prominent exchange, has revealed its intentions to delist tokens such as Zcash and Monero by January 5th due to misalignment with their listing criteria. This coincides with Binance’s decision and highlights the growing trend of exchanges reviewing and potentially delisting privacy tokens.
The potential delisting of privacy tokens by Binance, such as Zcash, Monero, and Horizen, has had a significant impact on the cryptocurrency market. The wider privacy sector has experienced a decline in recent days, and the affected tokens have seen substantial price decreases. Binance’s decision is part of a comprehensive project review aimed at maintaining compliance with listing criteria and regulatory requirements. By introducing mandatory quizzes for users interested in trading these tokens, Binance aims to enhance user education on the risks associated with privacy assets. Other exchanges, such as OKX, have also recognized the need to reassess their listing criteria and consider the delisting of privacy-focused cryptocurrencies. As the cryptocurrency landscape continues to evolve, the regulation and evaluation of privacy coins will be an ongoing topic of interest and importance.