Kraken – the top eight biggest crypto exchange globally by trading volume – has reportedly disclosed details regarding its initiative to remove privacy coin Monero (XMR) from current listings.
Specifically, the move is reportedly made in a bid to stay in compliance with regulations of the UK. The platform will stop every XMR trading activity, change XMR wallets to withdraw-only, as well as force-liquidating any XMR margin positions still on the platform after Nov. 26.
Via advanced cryptography, privacy coins such as Monero keeps participants’ public wallet addresses and payment amounts concealed, when the transaction is visible across the blockchain, turning it improbable, in the context of existing technology, for forensic establishments, nominally Chainalytics, to follow with the identities of the transacting parties in a digital fashion.
The growth of privacy coins like XMR has reportedly gathered controversial remarks.
Advocates shared that they equip users with enhanced personal privacy, compared to cryptos with universally-viewable ledgers such as Bitcoin (BTC), taking into account that individuals’ public wallet addresses and transactions are not subjected to cross-comparison with know-your-customer data kept on exchanges to break through the shroud of their identity.
Nonetheless, critics believed that privacy coins’ nature to bar the traceability accidentally turn them into ideal instruments for criminals, consequently leading to illicit utilization in drug trafficking, tax evasion, or money laundering operations.
As a result, privacy coins have to deal with scrutiny from crypto exchange entities throughout the globe. In 2020, Coinbase turned down the option of listing XMR due to concerns associated with regulations.
Earlier in January, Bittrex delisted XMR, as well as leading privacy coins Zcash (ZEC) and Dash.