Binance removed XMR from its platform, a tribute to the cryptocurrency’s privacy-preserving efficacy.
Binance’s Hit Reinforces Monero’s Mission. In an expected move, Binance, the world’s largest bitcoin (BTC) and cryptocurrency exchange, has announced its decision to delist monero (XMR), which is the most famous and prominent privacy cryptocurrency. As of February 20, XMR will not be part of the digital assets available on Binance. You may initially perceive the news as a blow to Monero and its users. The market took it as a negative, and the price of XMR took a considerable fall. But, a closer look suggests that this development could align with and even strengthen the fundamental principles upon which Monero stands.
Monero has distinguished itself in the cryptocurrency ecosystem for its focus on privacy and anonymity. Unlike most cryptocurrencies where financial movements are transparent, Monero uses obfuscation technologies to ensure that transactions are anonymous and reduce the possibility of being tracked (although, if the user is not careful enough, there may be ways to identify a wallet). This level of privacy made Monero an essential tool for those looking to protect their financial freedom from surveillance and censorship.
You can interpret Binance’s decision to delist Monero as a response to increasing regulatory pressures from states seeking greater (or complete) transparency in financial transactions, including those involving cryptocurrencies. Financial institutions and regulators often view privacy-focused cryptocurrencies as enemies, arguing that they can facilitate illicit activities by providing anonymity.
And Binance years ago, in its struggle to survive, fell into the regulators’ game and implemented mandatory Know Your Customer (KYC) procedures. The company founded by Changpeng Zhao thus moved away from the privacy principles it promoted at its inception. In a world where Binance becomes the epitome of regulation and control, Monero’s slip seems almost a tribute to its effectiveness in preserving privacy.
So, from a pro-Monero perspective, you can see Binance’s action not as a setback but as a validation of the mission and values of this network. The essence of Monero is to protect the privacy of its users, principles that are increasingly at risk in a digital world dominated by surveillance and centralized control.
In addition, this “coup” by Binance may strengthen the Monero community. When faced with external challenges, communities often come together with a renewed sense of purpose and commitment to their core values.
The X user BTCLovera, who spreads the word about Monero technology, wrote:
“I haven’t used Binance for years, so I don’t care. However, I understand the decrease in liquidity it entails. I will continue to support and contribute to XMR, to our freedom, privacy, and sovereignty. If they want to eliminate it for a reason.”BTCLovera
Also, the exclusion of Binance could incentivize the development of more decentralized alternatives and exchange platforms that operate with principles aligned with its ideals. Most Monero advocates have always recommended against using Binance or other exchanges with KYC to purchase Monero, as there remains a record that an individual has purchased XMR.
This divorce between Monero and Binance is, therefore, less of a tragic ending and more of a reminder of the mission that Monero (and, by extension, all financial privacy advocates) still have before them. Bitcoin also offers – to those who wish – the ability to operate without KYC and by obfuscating transactions and hiding the trail, thus exercising the right to privacy.