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Binance, a cryptocurrency exchange, will reportedly halt the trading of privacy-centric coins like Monero (XMR) in Belgium. In a screenshot circulated on X, the exchange cited adherence to local laws as the primary reason.
Privacy coins will be outlawed and delisted from all exchanges.
— MisterCh0c (@Mister_Ch0c) September 6, 2023
For Europe it starts now pic.twitter.com/CQ42Q2b8n1
A Binance spokesperson also emphasized their commitment to complying with local laws regarding privacy coins.
The delisting of privacy-centric coins in Belgium follows Binance taking similar actions in France, Italy, Poland, and Spain a few months ago.
With this announcement, privacy coins like Monero (XMR), MobileCoin (MOB), Firo (FIRO), and Horizen (ZEN) will no longer be available for trading to Belgian customers beginning Sep. 21.
Platforms powering these coins specialize in offering enhanced anonymity features, employing technologies like zero-knowledge proofs to obfuscate transaction details.
While these features have legitimate uses, concerns around their potential for facilitating money laundering activities have led to increased scrutiny by regulators.
Interestingly, the timing of the announcement is worth noting.
Last week, Binance declared its intentions to serve Belgian users through its entity in Poland. This relocation implies that Polish regulatory stipulations will now extend to the Belgian user base as well.
The context within which this decision was made raises questions about how national and international laws can affect the operations of decentralized technologies and platforms.
The European Union is presently engaged in legislative discussions aimed at dealing with the money laundering risks tied to anonymous crypto transactions.
Future regulations could range from more stringent trading restrictions to an outright ban on privacy coins.
Binance has expressed its proactive approach towards regulatory compliance, stating that it will continue to update its product and coin offerings in accordance with evolving legal frameworks.
The unfolding scenario brings forth crucial points for consideration, both for crypto platforms and regulators.