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Monero’s price fell by 8% a day after Kraken announced it would stop supporting the privacy-focused cryptocurrency.
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Crypto exchange Kraken will end its support for privacy token Monero in the European Economic Area (EEA).
Kraken announced that it would stop trading and deposits for all Monero (XMR) markets in the EEA from Oct. 31, 2024. This includes the trading pairs with United States dollars, euro, Bitcoin (BTC) and Tether’s USDt (USDT).
Kraken cited regulatory and compliance obligations as the reason for discontinuing support for XMR. The exchange said in a statement:
“After thorough consideration, and exploration of all viable alternatives, we concluded we have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.”
While Kraken will stop trading and deposits for XMR, users have until Dec. 31 to withdraw their tokens. If users do not withdraw their XMR tokens by the deadline, Kraken will convert them into BTC. The converted tokens will be distributed on Jan. 6, 2025.
New regulations prohibit the use of privacy tokens
The decision follows regulatory developments in the European Union prohibiting crypto asset service providers (CASPs) from using privacy-focused tokens like Monero or providing accounts for anonymous users.
Earlier this year, Kraken ended XMR trading in Ireland and Belgium. On April 11, the exchange warned its users to close their positions on XMR or have them automatically closed. In 2021, Kraken discontinued support for Monero for customers based in the United Kingdom.
Other jurisdictions have also cracked down on privacy-focused tokens. In 2018, Japan initiated a ban on anonymity-enhanced tokens. In 2020, South Korea also banned privacy coins from trading platforms, while Australian exchanges began delisting privacy tokens because of new regulations.
Dubai prohibited all activities related to privacy coins and the issuance of anonymity-enhanced tokens on Feb. 7, 2023.
Related: Kraken acquires Dutch broker BCM as part of European expansion
Monero token drops 8% after Kraken ceases support
A day after Kraken’s announcement, XMR’s price declined by 8%. Cointelegraph Markets Pro data shows that the token dropped from $154 on Oct. 1 to $141 on Oct. 2.
Monero’s seven-day price chart. Source: Cointelegraph Markets Pro
While the delisting may have affected Monero’s price, the broader crypto market cap also suffered blows in the past 24 hours, with the overall market cap declining by 6.3%.
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This article first appeared at Cointelegraph.com News
