Kraken to End Monero Support in EEA Amid Regulatory Pressures

By: Eva Baxter

Kraken has announced that it will discontinue support for Monero (XMR) in the European Economic Area (EEA) as of October 31, 2024. This decision comes in response to recent regulatory changes in the region, as stated in an October 1 announcement.

Starting at 15:00 PM UTC on the aforementioned date, all trading and deposits of Monero markets (XMR/USD, XMR/EUR, XMR/BTC, XMR/USDT) for clients registered within the EEA will be halted. Additionally, any open XMR orders will be automatically closed. Although trading will cease, users will have until December 31, 2024, to withdraw their Monero assets. Any Monero left unclaimed by that date will be converted to Bitcoin and distributed to users who have not withdrawn their Monero by January 6, 2025.

This move by Kraken is not unprecedented. The exchange had previously delisted Monero in Ireland and Belgium earlier this year, although the reasons for those actions were not specified. Riccardo Spagni, a blockchain analyst, has suggested that the removal could be attributed to Chainalysis's inability to obtain meaningful tracking data from Monero. Spagni speculates that if Monero transactions could be effectively traced, regulators might have preferred keeping it on exchanges for surveillance purposes.

Adding to the controversy, recent developments include a leaked video from Chainalysis that implied Monero transactions could be traced. Although the video has since been deleted, it raised significant concerns about the true privacy protections offered by Monero.

XMR Declines Amid Delisting News

In tandem with Kraken's announcement, the value of Monero experienced a significant decline. XMR dropped over 5% within a day, settling at $144, according to market data. This dip in Monero's price mirrors a broader market trend affecting other digital assets, including Bitcoin, which have been impacted by rising geopolitical tensions in the Middle East.