- Binance placed monitoring tags on several coins including privacy coins Monero and Zcash due to concerns over volatility and regulatory risks.
- The monitoring tag requires users to pass quizzes every 90 days to trade these assets, which may face delisting if they fail to meet Binance’s criteria.
- Privacy coins are facing increased scrutiny, with OKX already moving to delist some trading pairs. However, developers like Firo aim to work with exchanges to balance compliance and privacy.
Binance recently placed monitoring tags on several coins and tokens, including major privacy coins Monero and Zcash. The world’s largest exchange warned that these assets may no longer meet its listing criteria due to increased volatility and risks.
Binance’s Monitoring Tag
Binance said in a statement that it will extend the monitoring tag to ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC, and ZEN.
“Tokens with the Monitoring Tag exhibit notably higher volatility and risks compared to other listed tokens,” Binance said. “These tokens are closely monitored, with regular reviews conducted. Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.”
Binance added that users must pass corresponding quizzes every 90 days to gain trading access to these tokens labeled with the monitoring tag.
Privacy Coins Targeted
The monitoring tag has been placed on privacy coins like Monero and Zcash due to increased regulatory pressure.
“This includes recent initiatives from US regulators and compliance to Binance’s settlement with the US DoJ,” said Reuben Yap, co-founder of Firo.
However, Yap added that Firo has been in discussions with Binance since September 2023 on implementing “Exchange Addresses” to balance compliance without sacrificing user privacy.
Last week, OKX also took action against coins like XMR and ZEC. OKX said it would delist several trading pairs, including XMR-BTC, XMR-ETH, XMR-USDT, and more.
As regulatory pressure mounts, exchanges like Binance and OKX are placing greater scrutiny on privacy coins. However, developers of these coins, like Firo, aim to work with exchanges to find solutions that meet compliance requirements without fully sacrificing user privacy. The coming months will determine whether increased regulation ultimately forces the delisting of major privacy coins from top exchanges.