Kraken is one of the largest exchanges in the world. Ranked 4th on CoinMarketCap by daily volume, the exchange is one that works well in the UK. Kraken has always pushed to be compliant with regulators around the world in order to stay active, it recently announced they will be delisting Monero (XMR).
In the UK there has been little regulation applied to cryptocurrencies. This year, however, the nation took action against one of the world’s largest exchanges, Binance, and banned its operation because it did not meet anti-money laundering requirements. It looks as though there are bigger steps being taken towards privacy coins for a similar reason.
XMR is the largest and oldest privacy coin available. Starting in July 2012, the coin was designed to create a secure and privacy-centric cryptocurrency experience. Transactions with this coin are untraceable. Many crypto enthusiasts claim that XMR is the greatest protection against user identity and brings privacy to a whole new level. Unfortunately due to the lack of traceability, XMR has a reputation as being used to purchase illegal goods and services on the dark web.
Kraken has now announced it will cease all services surrounding the coin on its platform. While trading is still active, the platform will stop services on 26 November 2021. Kraken is not the only exchange to make this decision, last year Coinbase declined to add the privacy coin to its platform, followed by Bittrex delisting the coin from its exchange for similar reasons.
Privacy coins remain very popular amongst crypto enthusiasts. Monero is still ranked 48th in total market capitalization out of all coins and tokens. The privacy coins combined have a market capitalization of around $15bn. Governments have been pushing back against such coins as they cannot trace them for tax purposes and worry about their use in cyber security attacks.
It will be interesting to see if any of these exchanges still support privacy coins in the future. While they are the beacon of user privacy and security, they have a bad reputation surrounding them.
As governments push to reveal the identities of wallet holders, the focus on getting rid of the coins will continue.