Binance Completes Delisting of Monero Amid Unexpected Market Reaction

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Binance, the top exchange by volume, has officially removed Monero from its platform as of Tuesday, February 20. This move follows the announcement made on February 10, signaling the end of XMR’s presence on the leading global trading platform. Amidst this development, Binance is navigating a challenging period, seeking to align with regulatory demands worldwide. The exchange’s previous CEO, Chanpeng Zhao, is under investigation in the United States and faces travel restrictions, despite residing in the UAE.

The decision to delist Monero didn’t come out of the blue. In 2023, Binance declared its intention to remove XMR and other privacy-focused cryptocurrencies in the European Union to adhere to regulatory standards. However, the exchange retracted its decision a month later.

Monero, known for its privacy-enhancing features that render transactions untraceable, has increasingly caught the attention of regulatory bodies. These authorities contend that the coin’s anonymity capabilities could facilitate the financing of illicit activities.

Currently, the major exchanges that continue to support XMR include Kraken International, KuCoin, and Bitfinex. Binance has not provided an elaborate rationale for Monero’s removal. The exchange stated:

At Binance, we periodically review each digital asset we list to ensure that it continues to meet a high level of standard and industry requirements. When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more in-depth review and potentially delist it.

This scenario is not unprecedented within the Monero community. Other exchanges have previously delisted the coin for legal reasons. Kraken removed Monero from its platform in the UK in 2021, Huobi followed suit in 2022, and OKX announced its decision to cease supporting the coin as a trading pair on January 4, 2024.

As the delisting process unfolds, all Monero trade orders will be automatically canceled after trading ceases. Binance has hinted at the possibility of converting delisted tokens into stablecoins for users after May 21, 2024, though this remains unconfirmed. In anticipation of the delisting, Binance withdrew XMR from its “earn” program and halted loans for the cryptocurrency.

Monero Users Hit With Difficulties During the Delisting

However, Monero holders have encountered challenges during the delisting process. Despite the withdrawal deadline not being reached, users have reported difficulties in withdrawing their coins from Binance. One user expressed frustration on X, questioning Binance’s motives for retaining any XMR in a cold wallet with only hours left until delisting.

Monero’s price experienced a significant 36% drop on the day of the announcement, followed by a period of sideways trading. Traders sold off their coins in anticipation of the delisting, causing the price of XMR to fall from $121.8 to $113.1. However, day traders appear to be capitalizing on the dip, as the coin has since recovered 6.4%, reaching its current price of $120.45 and nearly offsetting yesterday’s losses.

$XMR refused to be cucked to stay on cucked CEXs. XMR is leaving binance because it won't concede on privacy. This is very bullish, a stand like this will cement Monero in a top 5 spot long term, eventually #1.
One of the only coins that is actually used like money. Very active.

— 𝔹asedFrog (@BasedFrogeth) February 7, 2024

The outlook for Monero remains bearish, particularly following the February 6 crash. The coin is testing the resistance set by its average price over the last 10 days, a hurdle that has proven difficult to overcome in the past week. Additionally, the coin is heavily oversold, indicating market fear and a trend where sellers outnumber buyers (a Relative Strength Index or RSI of 39 suggests that out of every 100 traders, 39 want to buy the coin, and the rest want to sell it), and the bearish trend continues.