The spotlight is now on the privacy-centric cryptocurrency Monero [XMR], as major crypto exchanges, including Binance, opt for delisting after months of deliberation. This decision follows a broader trend of regulatory scrutiny and concerns over the potential misuse of privacy coins, which are specifically designed to enhance anonymity by concealing transaction details, including involved parties and amounts.
Recently, OKX, another significant player in the cryptocurrency exchange arena, declared its intention to delist 20 spot trading pairs in the upcoming year. Notably, this delisting encompasses three of the largest privacy-focused cryptocurrencies: Monero’s XMR, Zcash [ZEC], and Dash [DASH]. OKX has already halted deposits for these assets, and trading is slated to cease on January 5.
The announcement, issued last week, does not explicitly specify the reasons for delisting beyond stating that it is “based on feedback from users” and that the tokens “do not fulfill our listing criteria.”
The sequence of delisting decisions by leading crypto exchanges has left privacy advocates disheartened, perceiving these actions as yielding to regulatory pressures. Nikita Zhavoronkov, the lead developer of Blockchair, took a defiant stance by characterizing Binance’s announcement of delisting XMR as “the best Monero ad imaginable.” Binance had asserted that privacy coins like XMR, which resist compliance, are likely candidates for delisting in the coming month.
Monero, Zcash Debate Intensify
Blockchains should either be transparent or fully private; there’s no in-between. Just like Bitcoin miners censor OFAC addresses, Zcash miners may decide to censor all shielded transfers and still be rewarded. Monero miners don’t have this option.
Zhavoronkov presented a clear perspective, emphasizing that blockchains should either offer full transparency or complete privacy, with no middle ground. Drawing parallels, he noted that while Bitcoin miners might censor OFAC addresses, Zcash miners could potentially censor all shielded transfers and still receive rewards. In contrast, Monero miners lack this option.
Responding to a user’s comment on Monero’s privacy not being entirely foolproof, Zhavoronkov acknowledged the theoretical aspect but defended Monero’s default privacy feature. He stated that while users could reveal transactions using a private view key, the default setting of the privacy coin is private, distinguishing it from other cryptocurrencies. The nuanced debate underscores the complex interplay between technology, user behavior, and the evolving landscape of privacy-focused cryptocurrencies.