The cryptocurrency exchange Binance has decided to backtrack on its initial plan to remove several privacy coins from its platform in Europe. This reversal comes after the exchange reviewed its operations to ensure they meet local regulatory standards.
Binance Responds to Community Feedback
After receiving considerable feedback from its user community and multiple projects, Binance reevaluated its stance on privacy coins. “We have revised how we classify privacy coins on our platform to comply with EU-wide regulatory requirements,” stated the exchange on June 26.
As a registered exchange operating in several European Union jurisdictions, Binance acknowledged its obligation to adhere to local regulations. These guidelines require exchanges to “be able to monitor transactions for coins listed on our platform.”
Initially, Binance planned to delist privacy tokens for users in France, Italy, Spain, and Poland. This move would have prevented users from buying or selling 12 privacy tokens starting on June 26.
The announcement came through emails to users, noting that BEAM, XMR, MOB, FIRO, and ZEN would still face restrictions.
Relief Among Crypto Projects
After Binance retracted the total ban, multiple projects took to Twitter to assure their communities. Verge Currency shared its update on June 22, stating that its coin $XVG would remain unaffected by Binance’s trading restrictions on privacy coins in certain EU countries.
The Secret Network also confirmed that it would remain listed on Binance.
The Role of the EU’s MiCA Regulations
These decisions from Binance come at a time when the European Union is setting standards for digital assets through its new Markets in Crypto-Assets (MiCA) regulations, which were signed into law on May 31.
By establishing these regulations, EU policymakers aim to transform Europe into a hub for cryptocurrencies and digital assets. In July, the European Securities and Markets Authority plans to kick off a MiCA consultation process. The new laws’ framework provides an 18-month timeline to come into full effect.
Many industry players, including the cryptocurrency payment service provider Ripple, have welcomed the regulatory clarity offered by MiCA regulations.
