Kraken to Delist Monero for UK Users due to Regulatory Issues

Kraken to Delist Monero for UK Users due to Regulatory Issues

December 2, 2021 0 By Keith Jacobs

The Kraken exchange is the 5th largest exchange platform in the world in terms of transaction volume. Recently, the exchange has decided to make an important decision and ban XMR token trading on its platform. The representatives of the platform told the media that the decision had been taken as a measure to comply with the regulatory requirements of the United Kingdom.

It is worth noting that the Monero blockchain uses the XMR token that allows the user to conduct transactions without sharing any personal information. The UK is not the first country to raise objections towards this token. According to the announcement by Kraken, the XMR trading on its platform will be halted before the end of November.

The users who hold XMR token in their digital wallet addresses existing on the Kraken exchange will have to look for new addresses. The centralized exchange platform has made it clear that all XMR wallets will be set to withdraw-only options. The platform will also forcibly liquidate any margin positions that contain XMR tokens. Furthermore, all the existing positions of XMR tokens or trading will be removed from the platform.

Many cryptocurrency users praise the token for providing users a way of protecting their personal information. The XMR token uses cryptography technology to mask the public wallet addresses and the transaction details when the transactions become visible on the respective blockchain. Unlike, the Bitcoin network, where all the transactions are readily available for the public to view, the users of Monero can maintain their privacy despite the KYC protocol registration.

Crypto Exchanges have Removed many Privacy Coins This Year

The controversies around privacy tokens are a constant phenomenon. Some users have claimed cyberattacks and malware designed to mine XMR tokens without the knowledge of the users. The maintenance developer of Monero, Riccardo Spagni, was arrested in the USA this year at the request of Federal authorities from South Africa.

He was charged with several counts of fraud and scams conducted between 2009 and 2011 in SA with XMR tokens. More cryptocurrency exchange platforms are following suit. Coinbase refused to list XMR about the regulatory ambiguity. Bittrex exchange also delisted XMR, this year alongside its counterparts like Dash coin and Zcash. A report from CoinGecko reveals that the total market cap of the privacy tokens has reached $15 billion.