Binance Is Tightening Its Policy on Monero and Zcash, an Upcoming Removal?

The exchange platform Binance announced this Thursday, January 4, the tightening of trading rules for 10 cryptocurrencies, including Monero (XMR) and Zcash (ZEC). These will now be placed under “enhanced surveillance” due to the increased risks they present.

Binance Intensifies Surveillance of High-Risk Cryptos

In a recent press release, Binance, the global leader in crypto exchange platforms, has announced the expansion of its “surveillance beacon” starting January 4, 2023.

This decision comes after Binance’s recent regulatory troubles, facing allegations of money laundering and violations of KYC rules set by the U.S. SEC.

Among the additional cryptos placed under high surveillance are two valuations focused on transaction privacy: Monero (XMR) and Zcash (ZEC). These two cryptos have regularly attracted the ire of authorities for their anonymizing properties, which are conducive to large-scale money laundering according to some regulators.

In addition to Monero and Zcash, Binance will also pay closer attention to the tokens Keep3rV1, Reef, Aragon, Firo, MobileCoin, Mdex, Vai, and Horizen. Meanwhile, rules are relaxed for GMX and SushiSwap, which have been removed from the list.

Binance justifies its decision by stating that these cryptos are more volatile and have a higher risk of illicit use than others. OKX had already limited the trading capabilities of several similar cryptos last week. Thus, regular checks ensure they continue to meet strict listing criteria. Non-compliance with these criteria can lead to their delisting.

A Decision in Line with Compliance Policy

To be able to trade these high-risk cryptos, Binance users will now have to take a quiz every 90 days. They will also have to accept the platform’s enhanced terms of use, aimed at raising awareness about the risks involved.

Moreover, tokens marked with Binance’s “Seed Tag” are considered as promising projects, but very volatile. Warning banners on the risks will be clearly visible on their trading pages.

Binance has assured that it will conduct periodic reviews of crypto projects, taking into account factors such as team commitment, development progress, and adherence to KYC diligence. These analyses will allow for adding or removing tokens from the surveillance lists.

Aware of the pressing expectations of regulators, Binance seems ready to make certain sacrifices, even if it means restricting transactions on some trendsetting cryptos among traders. By tightening its compliance policy, it hopes to regain the trust of authorities that was shaken in 2023.

In short, this delicate balance between increased security and maintaining its dominant position reflects the difficult exercise of moderation undertaken by the crypto giant.