Binance, a cryptocurrency exchange, has chosen to delist privacy currencies in some regions. The policy will go into force on June 26 and will directly affect France, Italy, Poland, and Spain. As a result, 12 privacy currencies, including Decred, Dash, Zcash, Horizen, PIVX, Navcoin, Secret, Verge, Firo, Beam, Monero, and MobileCoin, will be impacted.
In the aforementioned countries, these coins will no longer be available for trading on the Binance platform. Binance has notified its customers in France, Spain, Italy, and Poland that the exchange has decided to withdraw the privacy coins from the market.
Privacy coins belong to a specific category of cryptocurrencies that aim to enhance transaction privacy by utilizing technologies like zero-knowledge proofs. These technologies effectively conceal transaction details, making tracing and identifying the sender, recipient, and transaction amounts challenging.
By implementing such measures, privacy coins provide users with increased anonymity and make it harder for external parties to track and monitor their transactions.
The popular privacy coins have lost 3.2% of their value when compared to the US dollar. The total market capitalisation of all existing privacy currencies is at $5.73 billion. Monero (XMR) is the most valuable of these coins.
The European Union has taken steps to address the issue of money laundering dangers associated with anonymous cryptocurrency transactions. In response to these concerns, the EU is considering new legislation that might limit the use of privacy currencies.
The European Banking Authority (EBA) issued draught recommendations today warning crypto firms to be wary of customers who engage in transactions involving privacy currencies. The goal is to assist these businesses in identifying potential cases of money laundering.
This approach was motivated by mounting regulatory pressures. Similarly, authorities in the United States recently slapped prohibitions on the use of Tornado Cash, a cryptocurrency mixer, due to worries about its purported ability to help criminals to launder funds.
