Binance To Reclassify Certain Privacy Coins in Some EU Markets

Updated: 29 June 2023

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Binance, a prominent cryptocurrency exchange, has reversed its decision to delist specific privacy tokens across multiple European markets.

The leading coin trading platform will now maintain the availability of trading for these digital assets by reclassifying them to align with EU regulations.

Binance to Retain Support for Privacy Coins Despite Initial Delisting Plans

Binance has reversed its plan to delist privacy-oriented cryptocurrencies in several EU jurisdictions. After receiving feedback from some projects and traders, the company decided.

https://twitter.com/BellaQueenNFT/status/1674298012082876417?s=20

Last month, Binance informed its customers that it intended to remove 12 privacy coins in France, Spain, Italy, and Poland. These coins were:Dash (DASH), Verge (XVG), Beam (BEAM), Monero (XMR), Navcoin (NAV), Firo (FIRO), Horizen (ZEN), Secret (SCRT), Zcash (ZEC), Pivx (PIVX), Decred (DCR), and Mobilecoin (MOB).

Binance cited local regulatory requirements in these four markets that prevented it from offering privacy-enhanced cryptocurrencies. However, in a recent statement by crypto media, the exchange showed that it has now revised its approach to classifying these coins.

“In response to valuable input from our community and the analysis of numerous projects, we have thoroughly reevaluated our categorization approach for privacy coins on our platform to ensure full compliance with EU-wide regulatory obligations.”

Binance Restricts Trading on Tokens Amidst Growing Crypto Regulations

The European Union is preparing to enforce the recently adopted Markets in Crypto Assets (MiCA) law. Besides this comprehensive regulatory package, European lawmakers have approved supplementary legislation to ensure that crypto transactions can always be traced by implementing the ‘travel rule’ for digital assets.

Binance, which has faced mounting regulatory scrutiny, including a legal clash with the US securities regulator regarding the classification of certain listed coins, has recently withdrawn from the Dutch market, submitted a deregistration application in Cyprus, and revoked its authorization in the UK.

The company wants to concentrate on fewer, regulated entities in Europe.

Europe Crackdown

In June 2021, the FCA issued a notice regarding Binance’s lack of registration as a crypto-service provider in the UK. However, in a recent update in June of this year, the FCA stated that Binance had withdrawn its application for regulatory approval in the UK.

Regulatory activities on Binance have increased in separate EU jurisdictions following charges by the Securities and Exchange Commission (SEC). The French police raided Binance’s offices in Paris, while Belgian authorities shut down its operations there.

Ongoing investigations are also taking place in other EU states. Additionally, Protos reported on Tuesday that Binance is under suspicion of using Ireland as a European base, where it establishes various Binance companies in different jurisdictions. Authorities suspect that some of these companies have fake accounts.