Kraken to Delist Monero in the European Economic Area Amid Regulatory Changes

• Kraken will delist Monero in the EEA due to regulatory changes, halting trading and deposits by October 31, 2024.
• EEA users must withdraw Monero by December 31, 2024, or their balances will be automatically converted to Bitcoin.
• New EU anti-money laundering regulations are driving exchanges like Kraken to delist privacy-focused cryptocurrencies.

Kraken will delist Monero (XMR) for users in the European Economic Area (EEA).The move comes due to new regulation targeting privacy coins. This move will affect Monero trading and deposits for EEA clients starting October 31, 2024, at 15:00 UTC.

Kraken to Shut Down XMR Trading Pairs

The delisting will close the XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT markets. The open orders will also be automatically closed by Kraken at the specified deadline. The clients will be allowed to redeem Monero until December 31, 2024, from the platform.

Upon this date, any outstanding Monero will be sold at the current price in Bitcoin (BTC). The exchange intends to distribute the converted bitcoin to the affected users by January 6, 2025. 

Regulatory Scrutiny on Privacy Coins

This development is part of a broader regulatory push against privacy coins like Monero. These coins are known for providing enhanced anonymity in transactions, making them targets of scrutiny. Kraken’s move comes at a time when other big exchanges like Binance and OKX are delisting it.

Much of this change has been due to the European Union’s MiCA legislation for Markets in Crypto-assets, which will come into force in December this year. The new anti-money laundering (AML) regulations that are set to be implemented bar crypto-asset service providers from providing privacy coins. These regulations also prohibit users from making payments with such tokens as Monero.

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Future Implications for Privacy Coins

While privacy coins may still have a place in regulated markets, the added pressure from regulation remains unclear as it continues to intensify. More exchange trading platforms are now required to meet higher standards, possibly reducing the circulation of these coins.

The move by Kraken to delist Monero for the EEA clients is a major new development in the use of cryptocurrencies. The increase in the regulatory attention might further reduce the number of privacy coins available in the regulated jurisdiction.