BitBay Delists Monero: The Ongoing Battle Against Privacy Coins

BitBay’s Bold Move: Goodbye Monero

On November 25, 2020, the Poland-based cryptocurrency exchange BitBay made a decision that sent ripples through the crypto community: it announced the delisting of Monero (XMR). Set to take effect on February 19, 2020, this move stems from growing concerns over money laundering and compliance with regulations. Is this the end of the road for Monero on the exchange? Not just yet.

Reasons Behind the Delisting

BitBay highlighted its need to adhere to market standards and regulations, citing that, “Monero can selectively utilize anonymity features among projects,” which unfortunately makes it a magnet for potential illicit activities. The exchange also pointed out that it aims to mitigate any risks associated with inflow from external networks. This isn’t just a BitBay problem; the entire industry is tightening the screws on privacy-focused cryptocurrencies.

The Timeline of Events

Here’s how this is supposed to unfold for Monero holders:

• Nov. 29: BitBay will cease accepting XMR deposits.
• Nov. 29 – Dec. 5: Withdrawals will be suspended due to an upcoming Monero blockchain fork.
• Feb. 19: Trading support will officially end, with all buy and sell orders being canceled.
• By May 20: All Monero holders are required to withdraw their funds from the exchange.

The Privacy Coin Dilemma

BitBay isn’t alone in this stance; other major cryptocurrency exchanges like OKEx have also delisted several privacy coins, including Monero, Zcash (ZEC), and Dash (DASH). Their justification? New guidelines from the Financial Action Task Force that tighten the nuts on privacy cryptocurrency operations.

Regulatory Landscape: The New Normal?

This lingering sentiment against privacy-centric cryptocurrencies is largely due to their perceived association with crime. Just recently, the German Federal Ministry of Finance voiced its concerns about the rising use of these tokens, which are notoriously hard to track.

As safety nets tighten, privacy coins like Monero may find themselves increasingly squeezed out of mainstream platforms, leaving many to wonder: is this the beginning of the end for anonymity in crypto?