Binance Backtracks on Decision to Delist All Privacy Coins

Binance, EU law, and privacy coins

Back in May 2023, popular cryptocurrency exchange platform, Binance informed its European users of certain changes that would see their crypto activity become a little less private.

Due to an impending EU law, Binance had taken the decision to delist 12 privacy tokens for its users in France, Italy, Spain, and Poland.

It was to be that from June 26, 2023, they would no longer be able to trade Decred, Dash, Zcash, Horizen, PIVX, Navcoin, Secret, Verge, Firo, Beam, XMR, or MobileCoin.

The reason for the planned delisting was that the European Union was about to implement the Markets in Crypto-Assets (MiCA). The new legislation, which was officially signed into law on May 31, requires crypto exchanges to monitor transactions of all of its listed coins, including privacy coins.

So, why did Binance change its mind?

After speaking with its community and crypto projects, Binance decided to reverse the overall ban and only exclude five privacy tokens.

Binance explained that they had revised how they classify privacy coins and this re-classification would allow them to keep seven of the previously named coins, and still comply with EU-wide regulatory requirements.

Spared the axe are privacy coins Decred, Dash, Zcash, PIVX, Navcoin, Secret, and Verge.

But crypto enthusiasts wanting to trade in Beam, Monero, MobileCoin, Firo, and Horizen will be disappointed, as Binance has upheld their delisting.

A Binance spokesperson said that they had already reached out to affected users to inform them of the changes.

Why pick on privacy coins?

Exchanges around the globe have a complicated relationship with privacy coins because they tend to cause issues with regulators. The whole Binance debacle is evidence of that.

And they're not the only exchange to take action.

In Sept 2022, crypto exchange Huobi Global delisted seven privacy tokens stating that the action was to be “in compliance with the latest financial regulations.”

Governments in Dubai, South Korea, and Japan have also completely banned all privacy coins.

But why? What's the big deal with these particular coins?

Well, privacy coins offer more privacy protection for the user by hiding certain transactional data that is usually visible with other cryptocurrencies.

Transaction data such as the address activity and balance are better hidden with privacy coins. Basically, they make it harder to find out who sent what and to whom.

It's this extra level of “anonymity” that attracts not only privacy-conscious crypto enthusiasts but criminals wanting to hide illegal activity.

Knowing this, regulators make laws that make it almost impossible for crypto exchanges to continue to offer privacy coins to their users legally.

But is this a law on money laundering or an attack on privacy?

That remains to be seen.

For more privacy-related news, stay tuned to the Hoody Privacy Hub.