Kraken announced this Wednesday the upcoming withdrawal of one of the most secretive cryptocurrencies on the market, Monero (XMR). As of October 1, 2024, Kraken’s European clients will no longer have access to XMR for trading with Bitcoin (BTC), USDT and USD through the platform. By December 31, 2024, clients will have to withdraw all their holdings in XMR.

This announcement is particularly important for European cryptocurrency investors, as it demonstrates the consolidation of a stricter regulatory environment for currencies focused on the region.

Monero, known for providing untraceable transactions, has faced increasing scrutiny from regulators due to its association with illegal activities. Kraken’s decision therefore signals the likely loss of support this cryptocurrency will face in Europe, as other cryptocurrency exchange platforms seek to maintain compliance with MICA regulations.

Surprising Announcement

This announcement surprised many, as it came shortly after Kraken’s significant growth in Europe. Only last week, Kraken announced the acquisition of a Dutch cryptocurrency exchange, BCM. This enabled the company to become registered as a Virtual Asset Provider in the Netherlands, France, and Poland.

In addition, Kraken had already established strategic partnerships and acquired registration to offer its services in Spain, Germany, and Belgium, expanding its client base and consolidating its reputation in Europe.

Market Reaction

The effect of Kraken’s announcement can already be felt in the market. The price of Monero has fallen by 6.55% in the last 12 hours. The decision to delist Monero from Kraken is likely to spark conversations and concerns among European investors. Some may fear the loss of access to privacy-focused cryptocurrencies such as Monero. Others may question whether Kraken and other exchanges will continue to delist all privacy-focused cryptocurrencies due to the development of stricter regulations.

It is also possible that many will view the withdrawal of Monero with some relief. Due to its association with illegal activities, the withdrawal of Monero from the European listing of Kraken and other platforms could distance the image of the region’s crypto industry from these activities. This could potentially increase the legitimacy of the cryptocurrency market and make it safer in the eyes of some.

Kraken’s Strategy

Regardless of the removal of Monero from its European offering list, it is safe to say that Kraken remains committed to expanding its presence in the region. The platform has demonstrated a willingness and ability to grow, keeping pace with the growing regulatory environment by acquiring licenses that allow it to maintain compliance with MICA requirements.

By withdrawing Monero, Kraken shows its intention to favor cryptocurrencies that allow the company to remain compliant with the European regulatory landscape. While this decision may frustrate advocates of privacy-focused cryptocurrencies, it can also be seen as proof of Kraken’s commitment to consolidating its position in the European market.