Kraken, a renowned cryptocurrency exchange, recently made headlines with its decision to end support for Monero (XMR) in the European Economic Area (EEA) by the end of October. This move comes as a result of the regulatory changes in the region, prompting Kraken to announce the halt of trading and deposits for all XMR markets for clients registered in the EEA on October 31, 2024, at 15:00 PM UTC.
Users who hold Monero on the platform will have until December 31, 2024, to withdraw their assets. Any unclaimed Monero after this deadline will be automatically converted to Bitcoin, with the converted funds being distributed to users who haven’t withdrawn their Monero by January 6, 2025. This decision follows Kraken’s earlier actions against Monero in Ireland and Belgium, though the reasons for those delistings were not disclosed.
Blockchain analyst Riccardo Spagni weighed in on the situation, suggesting that Monero’s removal in Europe may be due to Chainalysis’ inability to extract meaningful tracking data from the asset. If Monero could be effectively traced, regulators might prefer to keep it on exchanges for potential surveillance purposes. The debate over Monero’s privacy features intensified following a leaked video from Chainalysis, which implied that Monero transactions could be traced, raising doubts about the coin’s privacy protections.
The news of Kraken delisting Monero had a significant impact on the value of XMR, which declined by over 5% in the past day to $144. This drop aligns with a broader market trend that has seen the values of top digital assets, including Bitcoin, decrease during the reporting period. Market observers attribute this downtrend to the escalating tensions in the Middle East.
Overall, the decision by Kraken to end support for Monero in the EEA reflects the evolving regulatory landscape in the cryptocurrency industry. As the market continues to adapt to changing regulations and technological advancements, it is essential for investors to stay informed and make well-informed decisions regarding their crypto investments.