Why Kraken Is Ending Monero Trades in Ireland and Belgium Soon

Last Updated on April 12, 2024

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Smartphone Displaying Logo of Kraken Cryptocurrency Exchange on Stock Exchange Chart Background. Source: piter2121 - stock.adobe.com

Key Takeaways:

  • Kraken will cease support for Monero (XMR) in Ireland and Belgium due to new EU regulations targeting privacy-focused cryptocurrencies, effective from May 10 for trading and June 10 for withdrawals.
  • Post June 10, any remaining Monero balances in user accounts will be automatically converted into Bitcoin (BTC), aligning with Kraken’s compliance efforts with local regulations.
  • Despite Kraken’s and other exchanges’ delistings of Monero in response to regulatory pressures, Monero’s market price remains stable around $132.35, suggesting market resilience amidst these changes.

Kraken, a major cryptocurrency exchange, has declared that it will soon cease support for Monero (XMR), a privacy-oriented cryptocurrency, for its users in Ireland and Belgium.

This decision follows upcoming regulatory changes within the European Union that restrict crypto asset service providers (CASPs) from handling privacy-focused cryptocurrencies.

Starting May 10, Kraken will no longer allow trading or deposits of XMR.

The exchange also mandates that all margin trading positions involving Monero be closed by this date; otherwise, they will be closed automatically by Kraken.

The final step in the delisting process will occur on June 10, when withdrawals for Monero will also be stopped for users in these two countries.

Kraken has further noted that any remaining Monero balances on users’ accounts after the final withdrawal date will automatically be converted into Bitcoin (BTC).

This move is in line with Kraken’s policy to ensure compliance with local regulations, which now include measures against anonymity-enhanced cryptocurrencies.

The backdrop to this decision includes similar actions by other exchanges.

In February, Binance also moved to delist Monero, which impacted its price briefly, demonstrating the market’s sensitivity to regulatory news.

Since 2018, several countries, including Japan and South Korea, have begun to enforce regulations specifically targeting privacy coins like Monero.

More recently, in 2023, Dubai introduced guidelines that prohibit the issuance and all activities associated with anonymity-enhanced tokens.

Other exchanges like Huobi and OKX have also delisted Monero in compliance with global regulations, citing the need to maintain a compliant and robust trading environment.

Kraken’s recent regulatory approval for money license registrations in Spain and Ireland contrasts these delistings, highlighting the complex and evolving landscape of cryptocurrency regulation globally.

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Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.

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