#binance will not delist #privatetoken s in #châuÂu . Instead Binane chose to consider classifying its assets according to EU law.
The exchange considered the decision to delist some private tokens in Europe. The exchange will no longer delist as it operates in compliance with regulations set by European authorities.
Binance will now reclassify tokens to meet regulations. In a recent comment, Binance said:
“After carefully reviewing feedback from our community and several projects, we have revised the way we classify tokens on our platform to comply with EU-wide regulatory requirements.”
Binance is also subject to regulations in a number of individual EU jurisdictions. The exchange said these jurisdictions have specific laws requiring Binance to “monitor all transactions.”
Binance planned to delist many private tokens in Europe
Last month, Binance announced it would delist a number of tokens in Poland, France, Spain and Italy. At the time, the exchange said it would delist at least 10 tokens.
The list includes DASH, ZEC, BEAM, XVG, XMR, PIVX, and MOB. There are also ZEN, FIRO, DCR, NAV and SCRT. Binance said it made the decision “as part of the European regulatory compliance process.”
Binance's announcement was met with some opposition. Secret Labs co-founder and CEO Guy Zyskind said Secret tried to fix what it considered misclassifications. Zyskind said that only the data contained in the smart contract is confidential. In addition, transactions are still public. According to him “Secret is much more suitable for GDPR type applications in blockchain settings.”
Private tokens provide users with more privacy than usual. These tokens hide user transactions, making monitoring nearly impossible. As a result, the authorities have developed a significant aversion to them. They believe these assets are easily used for money laundering and other illegal transactions.
European Union and MiCA
In April, the EU passed the Crypto-Asset Markets bill (#MiCA ) to regulate the digital currency sector. The bill was first introduced in 2020 to provide much-needed clarity to Virtual Asset Service Providers (VASPs). There are several arguments against MiCA. However, private tokens may be more affected than other types of digital assets. MiCA will require exchanges to only support them if user identities are verified.
The EU Parliament voted in favor of MiCA after much deliberation. Parliament postponed the final vote for a second time due to translation issues. The January delay follows an earlier delay in November 2022 because the legal document had to be translated into all 24 official languages.
With MiCA, the EU pioneered comprehensive cryptocurrency regulations and provided clarity compared to the United States. Cryptocurrency companies in the United States have been butting heads with authorities such as the SEC over what many have described as a deliberate attempt to avoid providing clarity.