Binance, a big cryptocurrency exchange, is now watching privacy-focused cryptocurrencies more closely. This action means that ten cryptocurrencies, like Monero, Zcash, and Firo, are being closely monitored because people are worried about changes in rules and the prices of the coins. The exchange requires these assets to be checked every 90 days to make sure they can still be traded.
Government rules and how businesses react to them
According to Binance’s new rules, these coins will be closely watched and regularly checked. The things used to judge include how dedicated the team is, how much trading is happening, the security of on-chain, and how easy it is to get money in and out. If a token doesn’t meet Binance’s rules, it might be removed from the list. This is not the only exchange making this change. Other exchanges like OKX and Huobi have also removed privacy coins from their platforms recently.
Privacy coins are a type of digital money that keep transactions and who’s involved in them secret using fancy math. But, regulators have been worried about them. Monero and Zcash use special tools to keep your financial transactions private and untraceable. But, people are worried that these features could be used for bad things like hiding where money comes from and sending harmful computer viruses. Even though the people who made them want everyone to have control over their money and rights, big companies are making it harder for people to use them.
Impact on the market and potential opportunities in the future.
After Binance made their announcement, the market showed a big change. Firo’s price went down by 21. 3% in just 2 days, and it was trading at $1. 51 Monero went up by 5. 3% at first, but then went down by 3. 1% Zcash also went down by 6. 9% during that time. In the past day, the privacy coin sector went down by 4. 5% and over the week, it went down by 11. 6%
Privacy coins are facing uncertainty as governments put more rules on them. For example, Horizen used to be a private coin, but in June 2023, it changed its direction and took away its privacy features because of global rules and regulations. These actions show the bigger problems that privacy coins are dealing with in today’s rules and regulations.
Binance and other exchanges are changing their rules to follow the law, and we are not sure what will happen to privacy-focused cryptocurrencies. Finding the right balance between keeping things private, following the rules, and making sure the market stays steady is still really important in the crypto industry.
Warning: This is not advice about trading.