Twelve privacy coins will be affected, including Decred, Dash, Zcash, Horizen, PIVX, Navcoin, Secret, Verge, Firo, Beam, Monero, and MobileCoin.

Cryptocurrency exchange Binance has decided to remove privacy coins in certain countries. The measure will enter into force on June 26, explicitly affecting France, Italy, Poland, and Spain. As a result, twelve coins will no longer be available for trading on the Binance platform in the mentioned countries.

Binance has sent emails to its clients in France, Spain, Italy, and Poland, notifying them of the exchange’s decision to remove privacy coins from the marketplace. In the email sent, Binance mentioned that they were unable to offer these privacy-enhanced cryptocurrencies in accordance with local regulatory requirements.

Privacy Crypto Coins Blocked in Some Countries

Privacy coins belong to a specific category of cryptocurrencies that aim to improve the privacy of transactions through the use of technologies such as zero-knowledge proofs. These technologies effectively hide transaction details, making it difficult to trace and identify the sender, recipient, and transaction amounts.

By implementing such measures, privacy coins give users greater anonymity and make it more difficult for outside parties to track and control their transactions. A Binance representative stated the following:

“While our goal is to support as many quality projects as possible, we must comply with local laws and regulations regarding the trading of privacy coins, to ensure that we are able to continue to serve as many users as we can.”

Prominent privacy coins recently witnessed a 3.2% decline in value compared to the US dollar. The collective market capitalization of all existing privacy coins amounts to approximately $5.73 billion. Monero (XMR) holds the first position among these coins.

EU Opposes Cryptocurrencies and Privacy-Based Tools

The European Union has been taking steps to address the money laundering risks linked to anonymous cryptocurrency transactions. In response to these concerns, the EU is contemplating implementing new regulations that could ban privacy coins.

Today, the European Banking Authority (EBA) released a guidance draft advising cryptocurrency firms to keep an eye out for customers engaging in transactions involving privacy coins. The goal is to help these companies identify possible instances of money laundering activities.

The global stance on privacy-oriented cryptocurrencies and other tools designed to improve cryptocurrency privacy has been marked by significant resistance from governments around the world. Concerns about possible money laundering activities and terrorist financing have been key factors driving this opposition.

For example, in September 2022, a major cryptocurrency exchange, Huobi, stopped supporting seven privacy coins, including Monero. Increasing regulatory pressures prompted this move.

Similarly, authorities in the United States previously imposed sanctions for the use of a cryptocurrency mixer, Tornado Cash, due to concerns about its alleged ability to allow criminals to launder funds.

Cryptocurrency exchanges in South Korea and other Asian countries have also removed major privacy coins due to regulatory concerns. This trend emerged in Japan in 2018 and spread across the region in 2019.

To conclude, it should be noted that privacy coins have often gotten the cold shoulder from regulators because they do not allow you to view transaction details and wallet balances.

While privacy coins protect users from surveillance, their anonymity also attracts malicious actors. Critics argue that these cryptocurrencies enable money laundering, terrorist financing, and other illegal activities.

By Audy Castaneda


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