Kraken Delists Privacy Crypto Monero in Belgium and Ireland Amidst EU Anti-Money Laundering Crackdown

Kraken is delisting Monero (XMR) in Belgium and Ireland due to EU anti-money laundering rules. Monero deposits and trading will be suspended on May 10th, with withdrawals remaining open until June 10th. Kraken will disable withdrawals on June 10th and convert all Monero balances to Bitcoin. This move follows Kraken's removal of privacy coins from its global exchange in February.

Kraken Delisted Privacy Cryptocurrency Monero in Belgium and Ireland Amid EU Anti-Money Laundering Regulations

Brussels, Belgium - Cryptocurrency exchange Kraken has announced the delisting of privacy cryptocurrency Monero (XMR) from its platform in Belgium and Ireland, effective June 10, in compliance with stringent anti-money laundering (AML) regulations implemented by the European Union (EU).

The decision, which encompasses the suspension of XMR deposits and trading on May 10, followed a similar move by Kraken in February, when the exchange removed privacy coins from its global platform. Other major exchanges, including Binance and OKX, have also delisted Monero in recent months.

Industry analysts have attributed the delisting trend to the EU's heightened focus on combating money laundering and terrorist financing, particularly through the implementation of the 5th Anti-Money Laundering Directive (5AMLD), which came into effect last month.

The 5AMLD prohibits crypto asset service providers from offering privacy coins, which allow users to conceal their identities and transaction details, making them attractive for illicit activities. The directive also restricts the use of privacy tokens for merchant payments.

Patrick Hansen, EU Strategy and Policy Director at Circle, clarified that the new regulations do not ban self-custodial wallets or peer-to-peer transfers, dispelling concerns within the crypto community.

"Self custody wallets are not banned. Payments to/from self custody wallets are not banned. P2P transfers are explicitly excluded from AMLR, as are..." Hansen tweeted on March 23.

The EU's Markets in Crypto-Assets (MiCA) legislation, which became law in June 2023, also classifies privacy coins as contraband. MiCA, which will become enforceable by December, further strengthens the EU's regulatory framework for crypto assets.

Kraken's delisting of XMR has met with a muted response from the market, with the token's price remaining largely unperturbed, trading flat around $133. However, industry experts believe that the trend towards delisting privacy coins is likely to continue as regulators worldwide tighten their grip on the crypto ecosystem.

The European Securities and Markets Authority (ESMA), the EU's financial markets watchdog, has recently published a report outlining its proposals for further crypto regulations under the MiCA framework, seeking public feedback.

Regulators have expressed concerns about the potential use of privacy coins for money laundering, terrorist financing, and other criminal activities. They argue that the anonymity provided by these coins makes it difficult to trace illicit transactions and enforce AML regulations.

The delisting of privacy coins has sparked debate within the crypto community, with some proponents arguing that it infringes upon the fundamental principles of privacy and financial freedom. However, regulators maintain that the measures are necessary to protect consumers and preserve the integrity of the financial system.

As the regulatory landscape continues to evolve, it remains to be seen how the crypto industry will adapt to the increasing pressure on privacy-focused cryptocurrencies.