Crypto exchange Kraken will cease its support for the privacy token Monero in the European Economic Area (EEA).
Kraken announced that it will stop trading and deposits for all Monero (XMR) markets in the EEA effective from Oct. 31, 2024. This decision includes trading pairs with U.S. dollars, euros, Bitcoin (BTC), and Tether’s USDt (USDT).
The exchange cited regulatory and compliance obligations as the reason for discontinuing support for XMR. In a statement, Kraken said:
“After thorough consideration, and exploration of all viable alternatives, we concluded we have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.”
While Kraken will halt trading and deposits for XMR, users have until Dec. 31 to withdraw their tokens. If users do not withdraw their XMR tokens by the deadline, Kraken will convert them into BTC. The converted tokens will be distributed on Jan. 6, 2025.
New regulations now prohibit the use of privacy tokens. This decision follows regulatory developments in the European Union that restrict crypto asset service providers (CASPs) from using privacy-focused tokens like Monero or offering accounts for anonymous users.
Earlier this year, Kraken ended XMR trading in Ireland and Belgium. On April 11, the exchange warned users to close their positions on XMR or risk having them automatically closed. In 2021, Kraken also discontinued support for Monero for customers based in the United Kingdom.
Other jurisdictions have implemented crackdowns on privacy-focused tokens. Japan banned anonymity-enhanced tokens in 2018, while South Korea followed suit in 2020. Australian exchanges also began delisting privacy tokens due to new regulations.
Dubai prohibited all activities related to privacy coins and the issuance of anonymity-enhanced tokens on Feb. 7, 2023.
A day after Kraken’s announcement, XMR’s price declined by 8%, dropping from $154 on Oct. 1 to $141 on Oct. 2, according to Cointelegraph Markets Pro data.
While the delisting may have impacted Monero’s price, the broader crypto market also faced challenges, with the overall market cap declining by 6.3% in the past 24 hours.
