The privacy-focused cryptocurrency Monero (XMR) has plummeted to five-month lows, following Binance’s announcement of its forthcoming withdrawal from the platform. According to some industry observers, this decision could mark the beginning of a gradual decline for Binance, once the giant of crypto exchanges.
A decision with multiple repercussions
On February 20, 2024, Binance will stop listing Monero, as well as other tokens such as Aragon (ANT), Multichain (MULTI) and Vai (VAI). All trade orders involving Monero, against Bitcoin (BTC), Ether (ETH), Tether (USDT) and Binance’s native currency, BNB (BNB), will be automatically cancelled after trading ceases for these pairs.
Binance’s announcement specifies that withdrawals of these tokens will no longer be possible after May 20, 2024. A conversion into stablecoins will be offered to users after this date, but is not guaranteed. The decision to withdraw XMR is motivated by various factors, including the contribution to a sustainable and healthy crypto ecosystem, as well as responsiveness to Binance’s periodic due diligence requests.
A rapid fall in the price of Monero
Following this announcement, Monero’s price immediately reacted, registering a significant drop. On February 6, 2024, at 9:21 UTC, XMR reached a low of $136 on Binance, losing almost 19% of its value in just a few hours. Although a slight recovery has been seen, with Monero trading at $140.30 at the time of writing, this decline represents a low not seen since mid-September 2023.
The global context of Monero delistings
Binance is not the only platform to have withdrawn Monero. At the end of 2023, crypto exchange OKX also announced the withdrawal of Monero and another privacy-focused cryptocurrency, Zcash (ZEC), on January 5, 2024. Binance had already considered withdrawing all privacy tokens in countries such as France and Italy in May 2023, before reversing its decision in June 2023.
The implications for Binance
This series of withdrawals comes at a difficult time for Binance, which continues to come under pressure from global regulators. Despite former Binance CEO Changpeng Zhao’s guilty plea in a US court for violating anti-money laundering laws and sanctions in 2023, the exchange faces bans from operating in states such as Florida and Alaska.
Zhao’s sentence, scheduled for February 23, 2024, could be up to 18 months in prison. These events mark a potentially decisive turning point for Binance, once a pillar of crypto exchange.
Conclusion: An uncertain future
The announcement of Binance’s withdrawal from Monero, coupled with the company’s legal situation, raises questions about the future of the platform and privacy-focused cryptocurrencies. While some see it as a harbinger of Binance’s “slow agony”, others see it as an opportunity to reconfigure the crypto landscape, where privacy and regulatory compliance will continue to play a central role.
