Binance backtracks and revises its stance on anonymizing cryptocurrencies

In a surprising U-turn, Binance, the world’s leading crypto-exchange platform, may be changing its policy on anonymity-enhancing cryptocurrencies, also known as “privacy coins“. According to reputable media outlet The Block, Binance representatives have stated that they have re-evaluated their asset classification in order to avoid removing certain cryptocurrencies from their platform.

Binance, we’ve revised our classification!

Binance’s about-face on privacy coins is attracting attention. The Block, an American media outlet renowned for its reliability, reports that representatives of the platform have expressed their willingness to continue allowing trading of these cryptos in France.

Less than a month ago, Binance had announced that it would stop supporting anonymity-enhanced cryptocurrencies (AECs). This classification referred to cryptocurrencies whose transactions are difficult to trace, including assets such as Monero or Zcash, which featured in the list shared on May 30.

Initially, the suspension of these cryptocurrencies was to take effect from June 26, 2023. However, Binance has modified its definition of CAEs and the way these “privacy coins” are classified. As a result, some cryptocurrencies could be removed from the initial list. A Binance spokesperson explained this decision to The Block as follows:

“Following careful analysis of feedback from our community and several projects, we have revised our classification of privacy coins on our platform in order to comply with European Union regulatory requirements.”

This U-turn by Binance on anonymity-enhancing cryptocurrencies raises questions about the regulatory approach and adjustments made by the platform to address compliance concerns. Binance investors and users are closely following these developments, which could have an impact on the cryptocurrency ecosystem.