Monero (XMR) fell sharply by 5% after Kraken announced that it would discontinue support for the privacy-focused cryptocurrency in the European Economic Area (EEA) by the end of October.
Monero Drops 5% as Kraken Cuts EEA Support Amid Regulatory Demands
According to a statement from the stock exchange, the move came in response to increasing regulatory pressures in the region.
Kraken has stated that it will halt trading and deposits on all Monero markets, including XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT for EEA-registered customers, as of 18:00 UTC on October 31, 2024. Open Monero orders will be automatically closed at this time.
While Monero trading remains restricted, Kraken users in the EEA will have until December 31, 2024 to withdraw their holdings.
At the end of this period, any unclaimed Monero will be converted to Bitcoin, and the converted funds will be distributed to users who were unable to withdraw their assets by January 6, 2025.
This is not Kraken’s first action against Monero in the region. A few months ago, the exchange removed support for the asset in Ireland and Belgium, but did not provide detailed reasons for these previous delistings.
Monero’s delisting has prompted comments from notable figures such as blockchain analyst Riccardo Spagni, who suggested that the move may reflect the inability of firms like Chainalysis to effectively track Monero transactions.
Spagni noted that if Monero could be reliably tracked, regulators might choose to keep it on the list as a surveillance tool rather than delist it.
The announcement dealt a heavy blow to Monero’s market cap, with the digital asset falling by more than 5% to $144, according to data from CryptoSlate.
The price drop reflects a broader downtrend in the cryptocurrency market as tensions in the Middle East shake investor sentiment and push down the value of Bitcoin and other top digital assets.
*This is not investment advice.