Kraken to end Monero support in European Economic Area

Crypto trade Kraken will end its support for privateness token Monero in the European Economic Area (EEA). 

Kraken introduced that it could cease buying and selling and deposits for all Monero (XMR) markets in the EEA from Oct. 31, 2024. This contains the buying and selling pairs with United States {dollars}, euro, Bitcoin (BTC) and Tether’s USDt (USDT). 

Kraken cited regulatory and compliance obligations as the explanation for discontinuing support for XMR. The trade stated in a press release: 

“After thorough consideration, and exploration of all viable alternatives, we concluded we have no choice but to delist Monero (XMR) in the European Economic Area (EEA) due to regulatory changes.”

While Kraken will cease buying and selling and deposits for XMR, customers have till Dec. 31 to withdraw their tokens. If customers don’t withdraw their XMR tokens by the deadline, Kraken will convert them into BTC. The transformed tokens might be distributed on Jan. 6, 2025. 

New laws prohibit the usage of privateness tokens

The resolution follows regulatory developments in the European Union prohibiting crypto asset service suppliers (CASPs) from utilizing privacy-focused tokens like Monero or offering accounts for nameless customers. 

Earlier this 12 months, Kraken ended XMR buying and selling in Ireland and Belgium. On April 11, the trade warned its customers to shut their positions on XMR or have them mechanically closed. In 2021, Kraken discontinued support for Monero for patrons primarily based in the United Kingdom. 

Other jurisdictions have additionally cracked down on privacy-focused tokens. In 2018, Japan initiated a ban on anonymity-enhanced tokens. In 2020, South Korea additionally banned privateness cash from buying and selling platforms, whereas Australian exchanges started delisting privateness tokens due to new laws. 

Dubai prohibited all actions associated to privateness cash and the issuance of anonymity-enhanced tokens on Feb. 7, 2023. 

Related: Kraken acquires Dutch dealer BCM as a part of European enlargement

Monero token drops 8% after Kraken ceases support

A day after Kraken’s announcement, XMR’s value declined by 8%. Cointelegraph Markets Pro knowledge exhibits that the token dropped from $154 on Oct. 1 to $141 on Oct. 2. 

While the delisting might have affected Monero’s value, the broader crypto market cap additionally suffered blows in the previous 24 hours, with the general market cap declining by 6.3%.

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