The clear-cutting at Binance continues. In a blog post, the world’s largest crypto exchange announced that it would delist the privacy coin Monero . However, XMR is not the only coin that was affected by the measure. From February 20th, ANT, MULTI and VAI will also be removed from trading on Binance. The blog post states that the exchange regularly checks the listed digital assets to see whether Binance’s quality standards are met. If this is not the case, a thorough check will be carried out and the token will be delisted if necessary in order to protect the users of the platform. Now Monero, the privacy coin with the largest market capitalization, has been hit. The price of XMR promptly collapsed. By the way, you won’t find any information on the blog about the exact reasons why Monero and the other coins were delisted.
What are privacy coins?
The so-called privacy coins promise anonymous digital payments. You have to know that payments with other cryptocurrencies are not quite as anonymous as users might think. In this case we speak of pseudonymity. When paying with Bitcoin, for example, the following data is recorded: sender and recipient addresses, the amount paid and the transaction ID. Under certain circumstances, it may well be that third parties can obtain personal information that you might not want to be made public. One of the principles of blockchain is that transactions can be tracked seamlessly. For this reason, the so-called privacy coins were created, which use certain encryption or obfuscation techniques so that their users’ data remains truly anonymous. Monero, for example, uses ring signatures for this. This is where multiple users sign a transaction, making it almost impossible to determine who carried out the transaction. Monero also uses cover addresses and confidential transactions. In the latter case, the transaction amount can be hidden. In addition to Monero, there are Dash and Zcash, among others.
The pros and cons of privacy coins
In South Korea, trading in privacy coins has been banned since 2018, in Japan privacy coins are completely illegal and in Australia the exchanges began delisting privacy coins in 2020. The EU is also planning to take tougher action against this type of crypto. To this end, the money laundering law should be reformed or tightened. The air for privacy coins is slowly becoming thin. By the way, Binance is not the first exchange to remove Monero from its offering. The coin can no longer be traded on OKX either. The Monero rate is currently $127.