Kraken sets a December 31 deadline for Monero withdrawals, conversions to Bitcoin to follow.
Key Takeaways
- Kraken will halt Monero transactions in the EEA by the end of October 2024 due to regulatory changes.
- Remaining Monero holdings will be converted to Bitcoin after the December 31, 2024, withdrawal deadline.
Kraken, one of the world’s largest crypto exchanges, has announced it will delist Monero (XMR) for users in the European Economic Area (EEA) due to regulatory changes. This decision marks a significant shift in the availability of privacy-focused cryptocurrencies in the region.
The US-based exchange will halt all XMR trading and deposits for EEA clients on October 31, 2024, at 15:00 UTC. This includes the closure of XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT markets. Any open orders will be automatically closed at this time.
Kraken has set a withdrawal deadline of December 31, 2024, at 15:00 UTC for users to remove their XMR holdings from the platform. After this date, any remaining XMR balances will be automatically converted to Bitcoin (BTC) at the prevailing market rate. The exchange plans to distribute the converted BTC to affected users by January 6, 2025.
In its announcement, Kraken emphasized that this decision was not made lightly, stating, “We did not take this decision lightly and remain committed to providing our European clients with an exceptional trading experience.” The exchange also reaffirmed its commitment to supporting a comprehensive range of digital assets while aligning with regulatory and compliance obligations.
Regulation on privacy coins
This move is part of a broader trend of increased scrutiny on privacy coins like Monero, which offer enhanced transaction anonymity. The delisting follows Kraken’s earlier decision in June to cease XMR support for customers in Belgium and Ireland.
The regulatory pressure stems from upcoming changes in the European Union’s crypto landscape. The Markets in Crypto-Assets (MiCA) legislation, set to take effect in December, along with new anti-money laundering (AML) rules, is forcing crypto service providers to reconsider their support for privacy-focused coins.
Patrick Hansen, Circle’s EU strategy and policy director, explained that the new AML regulations prohibit crypto-asset service providers from offering privacy coins and users from making merchant payments with tokens like XMR. This regulatory shift has led to a domino effect across major crypto exchanges, with Binance and OKX also taking similar actions to delist privacy coins.
The decision highlights the ongoing tension between privacy-preserving technologies in the crypto space and regulatory efforts to combat money laundering and illicit activities. As exchanges like Kraken navigate these complex waters, the future accessibility of privacy coins in regulated markets remains uncertain.
Kraken announced in April the discontinuation of Monero trading in Ireland and Belgium due to strategic realignments. Earlier this year, Binance completed the delisting of Monero in compliance with global regulatory requirements, triggering notable price fluctuations in Monero’s market value. Kraken recently completed its acquisition of Dutch crypto broker BCM to expand its European operations.
For Monero holders in the EEA, this announcement serves as a crucial reminder to take action before the deadlines. Users should plan to either withdraw their XMR or prepare for an automatic conversion to BTC. The impact on Monero’s market price and overall ecosystem remains to be seen, as one of the largest crypto exchanges in the world restricts access in a significant economic region.
