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Kraken Delists Monero in Ireland and Belgium, Converts Balances to Bitcoin

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Regulatory Pressure Drives Kraken’s Decision

Cryptocurrency exchange Kraken has delisted Monero (XMR) for users in Ireland and Belgium due to increased regulatory scrutiny. As a result, the exchange has forcibly converted all XMR balances held by Irish and Belgian customers to Bitcoin (BTC).

In a statement, Kraken attributed its decision to changes in regulatory requirements in the two countries. The exchange did not provide any further details but noted that it is committed to complying with all applicable laws and regulations.

Monero’s Privacy Features Draw Regulatory Attention

Monero is a privacy-focused cryptocurrency that enables anonymous transactions. Its features have made it popular with users who value financial privacy. However, these same features have also drawn the attention of regulators, who are concerned about Monero’s potential use in illegal activities.

In recent years, several major exchanges have delisted Monero or restricted its trading due to regulatory pressure. Kraken’s move follows similar actions by Binance, Coinbase, and other platforms.

Impact on Users

The delisting of Monero on Kraken will have a significant impact on users in Ireland and Belgium. They will no longer be able to trade or hold XMR on the exchange. Kraken has stated that it will contact affected users to arrange the conversion of their balances to BTC.

The conversion to BTC may have tax implications for users. In some jurisdictions, cryptocurrency transactions are subject to capital gains tax. Users should consult with a tax advisor to determine the potential tax implications of the XMR conversion.

Outlook for Monero

The delisting of Monero on Kraken is a setback for the cryptocurrency, but it is unlikely to have a major impact on its long-term viability. Monero remains popular with users who value financial privacy, and its underlying technology continues to be developed.

However, the increased regulatory scrutiny of Monero and other privacy-focused cryptocurrencies could make it more difficult for users to access and use these assets in the future.

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