Crypto exchange Kraken will stop trading and deposits for Monero (XMR) in the European Economic Area (EEA) by October 31, 2024.
The decision impacts trading pairs with USD, EUR, BTC, and USDT. Kraken cited regulatory and compliance obligations as the reason for the move, following new regulations in the European Union prohibiting crypto asset service providers from supporting privacy tokens like Monero.
Kraken users in the EEA will have until December 31 to withdraw their XMR tokens. Any remaining tokens after the deadline will be automatically converted into Bitcoin (BTC), with converted assets distributed by January 6, 2025.
This action aligns with broader regulatory crackdowns on privacy coins worldwide, including bans in Japan, South Korea, and Australia. Monero’s price dropped by 8%, from $154 to $141, following the announcement, amid a broader crypto market decline.
Privacy coins like Monero are designed to preserve user anonymity by obscuring transaction details, which has made them less popular with regulators and law enforcement agencies. Their unique features make it challenging to trace the flow of money, offering enhanced privacy for financial activities.
This development follows a similar move by another major exchange, OKX, which recently announced the delisting of several trading pairs involving coins such as ANT, XMR, ZEC, and ZEN.
Marcus Hughes, Kraken’s Global Head of Regulatory Strategy, revealed earlier this year that the exchange is preparing for various scenarios, including discontinuing support for certain tokens such as USDT. “It’s something we’re actively reviewing,” Hughes said, noting that a final decision will be made once the regulatory position becomes clearer.
Kraken’s consideration follows the actions of another major crypto exchange, OKX, which removed Tether trading pairs in Europe in March due to impending stablecoin regulations. An OKX spokesperson explained that the delisting will enable the exchange to introduce euro on-ramps for EEA-based customers. He added that this adjustment impacts only a minor portion of the exchange’s user base. In addition to phasing out USDT pairs,
