Privacy Tokens See Record Delistings in 2024 Amid Regulatory Crackdown — Kaiko Report

According to CryptoSlate: As per a recent report by Kaiko, privacy tokens have faced nearly 60 delistings by centralized exchanges (CEX) in 2024, marking the highest rate since 2021. The report highlights the increasing regulatory scrutiny that has driven platforms to remove tokens such as Monero (XMR), Dash (DASH), Decred (DCR), Mask (MASK), Rose (ROSE), and Zcash (ZEC) from their listings.Monero Leads the Delisting WaveMonero (XMR) experienced the most significant impact, with a 6x increase in yearly delistings, followed by Dash (DASH), which saw the second-highest number of removals. This trend has been attributed to the ongoing crackdown on privacy tokens, which are designed to obscure transaction details and make tracking more difficult, a feature that has drawn the attention of regulators worldwide.Regulatory Pressure and Global BansThe surge in delistings can be traced back to regulatory actions in various jurisdictions. For example, Japan banned privacy tokens as early as 2018, with Australia and South Korea following suit in 2020. More recently, the UAE introduced crypto rules that included banning privacy tokens, and the European Union rolled out the Markets in Crypto-Assets (MiCA) regulation, which further restricted their use.As regulatory pressure mounts, major crypto exchanges have responded by delisting privacy tokens. Kraken recently suspended XMR trading pairs for European users, while Binance completely removed the token from its platform. Other platforms such as OKX and Huobi initiated similar actions, citing compliance with regulatory demands as the main reason for delistings.Privacy Token Trading Shifts to Lesser-Regulated ExchangesDespite the widespread delistings, privacy tokens have found a new home on exchanges facing less stringent regulatory oversight, such as Poloniex and Yobit. These platforms have seen a sharp increase in privacy token trading, capturing 40% of the trading volume for top privacy tokens, up from just 18% in 2021. The demand for privacy tokens on these exchanges is so high that it often exceeds available liquidity in their order books, according to Kaiko's report.As regulatory frameworks tighten globally, privacy tokens like Monero, Dash, and Zcash continue to face delisting challenges on centralized exchanges. While their trading has shifted to lesser-regulated platforms, the ongoing scrutiny signals a challenging future for these tokens. Privacy token enthusiasts will need to navigate an evolving regulatory landscape as they seek ways to maintain access to these assets.