There are rumors in the market that the Kraken crypto exchange will close access to trading of the confidential Monero token for users from the UK at the end of November. However, Kraken is not the first trading platform to delist this cryptocurrency. How critical could such exchange actions be for the coin?
Decisive actions
Discussion began online about a possible ban on trading Monero on Kraken after one of the users published an alleged letter from the exchange to its clients. It states that the trading platform will close access to Monero trading in the UK from November 26.
Source: reddit.com
As stated in the letter, this decision was made by the exchange so as not to violate the requirements of British law. To this end, Kraken will forcibly close margin positions opened by clients on Monero. At the same time, users will be able to withdraw tokens to third-party crypto wallets and exchanges.
Not the first time
This is not the first time Monero has had problems with various crypto exchanges. In the fall of 2020, the electronic trading platform ShapeShift removed “privacy coins” from its trading list: Monero, Dash and Zcash. Then the exchange also explained its actions by its reluctance to get into trouble with the law. Similar actions were taken in January 2021 by the crypto exchange Bittrex, which also wanted to avoid conflict with the authorities. The most famous crypto exchange Coinbase in 2020 refused to include Monero in its trading list at all - precisely because of the position of regulators.
Source: twitter.com
What does this mean for Monero?
Monero was created as a coin that provides users with an unprecedented level of privacy through advanced cryptography. It allows you to hide transaction amounts and wallet addresses, ultimately preventing the user’s identity from being tracked.
At the same time, authorities in various countries fear that criminals will use Monero, as well as other cryptocurrencies with a high level of confidentiality, for their own purposes, so they are tightening control over them. Against this background, the decisions of trading platforms to delist or remove Monero can be called quite expected, but they cannot be called positive for the cryptocurrency itself.
Currently this cryptocurrency ranks 43rd in terms of capitalization with just over $4 billion.. Moreover, despite the fact that over the past month its market rate has fallen by 13%, in general, the dynamics of the rate of this cryptocurrency still remains quite positive. However, if crypto platforms continue to refuse this asset, its value may continue to decline.
Source: coinmarketcap.com
Author: Dmitry Noskov is an expert at the StormGain crypto exchange (a platform for trading, exchanging and storing cryptocurrency)
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