Privacy-focused cryptocurrency Monero has fallen to its lowest level in recent months following the announcement that it will be removed from Binance‘s token platform. According to the exchange’s announcement on February 6, Binance will delist Monero along with other tokens such as Aragon (ANT), Multichain (MULTI), and Vai (VAI) on February 20, 2024.
Effects of Delisting on Monero’s Price
The announcement stated, “All trading orders will be automatically removed after trading ends in the respective trading pairs,” and it was noted that withdrawals of these tokens will not be supported after May 20, 2024.
Binance mentioned that the delisted XMR could be converted to stablecoins on behalf of users after May 21, but the conversion is “not guaranteed.” The exchange also emphasized in its announcement that “a separate notification will be made before the conversion where appropriate, and stablecoins will be deposited into users’ Binance accounts after the conversion.”
The decision to delist XMR is based on various factors including “contribution to a healthy and sustainable crypto ecosystem,” “evidence of unethical or fraudulent behavior or negligence,” and response to Binance’s periodic due diligence requests, among others.
Market Reaction and Outlook
Monero’s price quickly reacted to the delisting news and the token experienced a sharp decline. At the time of writing, Monero’s price has dropped by 27%, trading at the $119 level.
Binance had previously announced plans to delist all privacy tokens in countries like France and Italy in May 2023, but reversed its decision in June 2023.
Community Reaction and Regulatory Pressures
According to some commentators, the delisting could also be bad news for Binance. Cryptocurrency investor John Brown stated in a post, “Although it’s bad for Monero, I mainly see this delisting as a sign of Binance’s gradual decline.”
Despite former Binance CEO Changpeng Zhao pleading guilty in a United States court at the end of 2023 for violating Anti-Money Laundering and sanctions laws, the exchange continues to face pressure from global regulators.
News at the end of January indicated that Binance.US was banned from operating in Florida and Alaska. Zhao, unable to obtain permission to travel to his home in the United Arab Emirates, is likely to be sentenced in the US on February 23, 2024, and could face up to 18 months in prison.
