Leading cryptocurrency exchange Binance is facing backlash from the cryptocurrency community after moving to delist the privacy-centric cryptocurrency Monero ($XMR), leading to a significant price and trading volume drop for the token.
The move came amid concerns that Monero’s use of stealth addresses does not align with Binance’s requirement for transactions from publicly transparent addresses. The backlash from the cryptocurrency community on various social media platforms has been notable, with many suggesting Binance is yielding to regulatory pressure in the United States by delisting the token.
This speculation was fueled further by the timing of the announcement, which occurred just a day after Treasury Secretary Janet Yellen emphasized the need for stricter cryptocurrency regulations.
Binance’s announcement saw the price of XMR plunge from around $165 to little over $100 before it started recovering, to now trade around the $130 mark. Reacting to the announcement, an account associated with the project said that “Monero will never compromise privacy.”
In response to the community’s concerns, Binance’s Customer Support team engaged with users through a generic response to queries, a move that as met with frustration from the community.
The exchange defended its actions by stating that it regularly assesses listed digital assets against a set of high standards, and delisting occurs when a coin no longer meets these criteria or when industry standards evolve.
Notably, last year, Binance agreed to pay one of the largest corporate penalties in U.S. history after a coalition of federal regulators accused the exchange of breaking sanctions and money-transmitting laws.
In the settlement, the company agreed to pay $4.3 billion, and its founder, Changpeng Zhao, also known as CZ, agreed to quit his position as CEO and admit to money laundering charges by the U.S. Department of Justice.
Featured image via Unsplash.
