Monero Plunges: Binance Delisting Sends XMR Tumbling 23% to $127

• Binance is delisting Monero (XMR)  due to failing to meet platform standards, causing a sharp drop in XMR’s price.

• Monero’s delisting is because it can’t comply with Binance’s new deposit requirement for transparent addresses, leading to community criticism and concerns.

In a recent announcement, Binance, one of the leading cryptocurrency exchanges, announced the delisting of Monero (XMR) along with three other notable tokens. The decision comes as part of Binance’s routine review process to ensure compliance with regulatory standards and maintain the integrity of its platform. In addition, Binance has declared the delisting of Aragon (ANT), Vai (VAI), and Multichain (MULTI), in addition to Monero. As a result, Binance will no longer trade some pairs, including XMR/BNB, XMR/BTC, XMR/ETH, and XMR/USDT.

Following Binance’s announcement, Monero (XMR) witnessed a sharp decline in its price. Within 30 minutes of the news breaking, the token’s value dropped from $165 to $148, representing a notable decrease of nearly 10%. As of the latest trading data, Monero is currently valued at $123.85, reflecting a substantial 10.99% decrease in the last 24 hours. The sudden price movement has garnered attention within the cryptocurrency community, sparking concerns and discussions regarding the implications of Binance’s decision.

Reasons for Delisting

Binance’s decision to delist Monero and the other tokens stemmed from its latest review of digital assets.  The exchange listed a number of reasons for this decision, including carelessness, evidence of unethical or fraudulent behavior, and the tokens’ inability to meet Binance’s requirements for building a robust and long-lasting cryptocurrency ecosystem.  Notably, the Monero team responded to the delisting on social media, stating that the lack of privacy protections on Monero was caused by Binance’s new demand that deposits originate from publicly transparent addresses.

The delisting is happening because Binance is now requiring that deposits come from a publicly transparent address. Monero has used stealth addresses for ALL addresses since it’s launch in April 2014

Monero allows selective disclosure with view keys but not a transparent address

— Monero (XMR) (@monero) February 6, 2024

Additionally, Binance has announced that withdrawals of XMR will be supported until May 20, 2024. After this date, users may still be able to convert their XMR tokens into stablecoins, although this option is not guaranteed. It remains to be seen how users will navigate these changes and whether alternative platforms will emerge to accommodate the delisted tokens.

Community Response and Criticism

The announcement of Monero’s delisting has sparked mixed reactions within the cryptocurrency community. Some users applauded Binance for its decision and stressed the value of regulatory compliance and openness, while others criticized the exchange for how it handled the matter. 

Many Monero fans expressed dissatisfaction and doubt over Binance’s explanation, raising concerns about the exchange’s intentions and decision-making procedure. Notably, Crypto Trader John Brown shared his perspective on social media, suggesting that Binance’s stringent compliance measures may limit its ability to support certain assets, potentially undermining its reputation in the crypto space.

Monero dropped strongly on the delisting news from Binance.

While bad for Monero, I mainly see this delisting as a sign of the slow demise of Binance. They are now "so compliant" that they cannot choose anymore which assets to support.

— John Brown (@john_j_brown) February 6, 2024

The delisting of Monero and other tokens comes at a crucial juncture for Binance, which has faced regulatory scrutiny in various jurisdictions. The exchange and its former CEO, Changpeng Zhao, have previously encountered legal challenges, including allegations of anti-money laundering violations and unlicensed money transmission. 

Given this, worries about Binance’s risk management and regulatory compliance may grow as a result of its move to delist Monero. The action also highlights how the regulatory environment for crypto exchanges is changing and emphasizes the importance of thorough due diligence and following rules.