Monero drops 5%, Kraken suspends support in EEA due to regulatory requirements

According to a statement on October 1, Kraken announced its decision to end support for Monero (XMR) in the European Economic Area (EEA) by the end of October.

The exchange explained that this decision was due to recent regulatory changes in the region.

For this reason, the platform explained:

“On October 31, 2024 at 3:00 p.m. UTC, we will suspend trading and deposits on all XMR markets (XMR/USD, XMR/EUR, XMR/BTC, XMR/USDT) for customers registered in the EEA. All open XMR orders will also be automatically closed at this time.”

However, users who own Monero have until December 31, 2024 to withdraw their funds. Any Monero left unclaimed after this period will automatically be converted into Bitcoin. These converted funds will be distributed to users who have not withdrawn their Monero by January 6, 2025.

Meanwhile, this move is not Kraken’s first action against Monero in the region. A few months ago, the exchange delisted the asset in Ireland and Belgium, but the reasons for these previous actions were not disclosed.

Riccardo Spagni, a well-known blockchain analyst, argued that Monero's removal in Europe likely reflects Chainalysis's inability to extract meaningful tracking data from the asset. According to Spagni, if Monero could be traced effectively, regulators would likely prefer to keep Monero on exchanges as a potential surveillance tool.

Recently, a leaked video from blockchain analytics firm Chainalysis sparked debate about Monero's true privacy features. The now-deleted video suggested that Monero transactions could be traced, raising concerns about privacy integrity.

XMR drops 5%

The news of Kraken's delisting has had a significant impact on the value of the digital asset, which has fallen by more than 5% to $144 in the past day CryptoSlates Data.

This price action reflects a broader market trend that has seen the value of Bitcoin and other top digital assets decline over the period. Market observers have linked this downward trend to escalating tensions in the Middle East.

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