Binance to Possibly Delist Several Tokens, Including Monero and ZCash

Binance to Possibly Delist Several Tokens, Including Monero and ZCash

UTC by Tokoni Uti · 3 min read
Binance to Possibly Delist Several Tokens, Including Monero and ZCash
Photo: Depositphotos

Privacy tokens Monero and Zcash are among the tokens given warning tags by Binance. Customers will need to complete a quiz to access them.

A crypto asset being listed on a major exchange like Binance is a sign that it is doing well and grants it a slew of benefits. At the same time, being listed on such exchanges is no guarantee that it will remain listed forever. Take the latest announcement from Binance that it will be adding a monitoring tag to 10 tokens. These indicate that the crypto assets are experiencing high levels of volatility and risk and might be delisted at some point.

Binance Cleaning House?

In its announcement, Binance said that ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC and ZEN were the tokens being slapped with a delisting tag. Notable among this group are Monero and ZCash. It is worth mentioning that both tokens were delisted from OKX just last month for no longer meeting the exchange’s listing requirements.

Privacy tokens as a whole have been subject to some controversy within the industry before and these two are no different. While some users support privacy tokens, others oppose them and this could possibly have contributed to the delisting. In its announcement, Binance said regarding tokens with the tag:

“These tokens are closely monitored, with regular reviews conducted. Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.”

We also need to consider the possible regulatory reasons for this. Some industry experts have suggested that there is mounting pressure from regulators for crypto exchanges to distance themselves from privacy tokens. Several major exchanges like Coinbase and Binance faced heavy regulatory pressure in 2023 and former Binance CEO Changpeng Zhao is even facing charges from the government.

Delisting and putting warning tags on privacy tokens might just be a way for the exchanges to diffuse the situation.

The Way Forward for Consumers

Regardless of the reason for this decision, where does this leave the consumers who want to use these tokens? Binance explained in its announcement that customers will be required to take a quiz every 90 days before they can access the assets that have a warning tag.

This, most likely, is to make sure that customers are fully aware of the risks involved with these tokens before they invest their money. It could also protect Binance from any liability. Of course, if the tokens end up being fully delisted, customers will have to get their needs met elsewhere.

When OKX delisted several tokens last month, customers were duly informed of when deposits and withdrawals would be suspended and advised to take the necessary action to avoid losing their funds. If Binance goes down the same route we can expect similar provisions.

Binance News, Cryptocurrency News, News
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