Moner Crashes to 5 Month Low amid Binance Delisting Plan
06 Feb, 2024 ● Coin news
Monero, a prominent cryptocurrency known for its focus on privacy, has experienced a significant drop to its lowest levels in several months following Binance's announcement of its impending delisting from the exchange platform.
Binance disclosed on February 6th that Monero, along with other tokens like Aragon (ANT), Multichain (MULTI), and Vai (VAI), will be delisted on February 20th, 2024.
Consequently, all trading pairs involving Monero will be removed, including those linked to Bitcoin, Ether, Tether, and Binance's native coin, BNB.
The announcement specifies that all trade orders will be automatically canceled once trading ceases in each respective pair, with withdrawals of these tokens unsupported after May 20th, 2024.
Binance noted that after May 21st, delisted XMR may be converted into stablecoins on behalf of users, although such conversion is not guaranteed.
Users will receive separate notifications before conversion, and the stablecoins will be credited to their Binance accounts afterward.
The decision to delist XMR was based on several factors, including its contribution to a healthy crypto ecosystem, evidence of unethical behavior or negligence, and responsiveness to Binance's due diligence requests.
Following the delisting news, the price of Monero experienced a significant downturn, plummeting to $136 on Binance at 9:21 am UTC, representing a nearly 19% loss in just a few hours, according to TradingView data.
Although there has been a slight recovery since then, with XMR trading at $140.30 at the time of writing, it remains at lows unseen since mid-September 2023.
It's worth noting that Binance is not the only exchange to delist Monero, as OKX also made a similar decision in late 2023.
Moreover, Binance had previously announced plans to delist all privacy tokens in certain countries, such as France and Italy, in May 2023, though it later reversed this decision in June 2023.
The delisting of Monero could potentially have negative repercussions for Binance, especially given the ongoing regulatory scrutiny it faces.
Despite former CEO Changpeng Zhao's guilty plea in a US court for breaking Anti-Money Laundering and sanctions laws in late 2023, the exchange continues to encounter pressure from regulators worldwide.
Reports in late January indicated that Binance.US was banned from operating in Florida and Alaska. Zhao, who was denied approval to travel to his home in the United Arab Emirates, is set to be sentenced in the US on February 23rd, 2024, facing a possible 18-month prison sentence.
Sources:
https://cointelegraph.com/news/monero-drops-multi-month-lows-binance-delisting
