Binance has put warning tags on privacy tokens like Monero and Zcash. Customers must take a quiz to get access to them.
When a cryptocurrency gets listed on a big exchange like Binance, it means it is doing good and comes with many advantages. Also, being on these exchanges doesn’t mean it will always be on them. Binance said they will put a monitoring tag on 10 tokens. This shows that crypto assets are very unpredictable and risky, and they might be removed from trading at some time.
Is Binance getting rid of things.
Binance said it’s removing ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC, and ZEN tokens from its platform. Monero and ZCash are important members of this group. Both tokens were removed from OKX last month because they did not meet the exchange’s requirements.
Privacy tokens have been controversial in the industry before, and these two are no exception. Some people like privacy tokens, but others don’t. This disagreement might have led to the tokens being removed from the list. In its announcement, Binance said about tokens with the label:
“These coins are carefully watched and checked on regularly. ” Please remember that tokens marked with the Monitoring Tag might not meet our rules anymore and could be removed from the platform.
We also need to think about the rules that might affect this. Some people who know a lot about industries have said that regulators are pushing crypto exchanges to move away from privacy tokens. Some big trading websites, like Coinbase and Binance, had a lot of trouble with rules in 2023. The old Binance CEO, Changpeng Zhao, is even in trouble with the government.
Removing from the list and adding caution labels to privacy tokens could be a way for the exchanges to calm things down.
Consumers’ next steps
No matter why they made this choice, what does it mean for people who want to use these tokens. Binance said that customers will have to pass a test every three months in order to use the assets with a warning label.
They probably want to make sure customers know about the risks before they invest their money. It could also keep Binance safe from being responsible for anything. Certainly, if the tokens are removed from the exchange, customers will have to find another place to meet their needs.
Last month, OKX removed some tokens from their platform. They told customers when they would stop accepting deposits and withdrawals for these tokens. They also told customers to do what they needed to do to make sure they didn’t lose their money. If Binance takes the same path, we can expect similar rules to be put in place.
