Kraken will close access to Monero trading for UK customers. Is this critical for the coin?

There are rumors on the market that the Kraken crypto exchange will close access to confidential trading at the end of NovemberMonero token for users fromGreat Britain. However, Kraken is not the first trading platform to delist this cryptocurrency. How critical could such exchange actions be for the coin?

Decisive action

A discussion of a possible ban began on the networktrading Monero on Kraken after one of the users published an alleged letter from the exchange to its clients. It states that the marketplace will close access to trading in Monero in the UK from November 26th.

Source: reddit.com

As stated in the letter, such a decision was madeexchange so as not to violate the requirements of British law. To this end, Kraken will forcibly close the margin positions opened by Monero clients. At the same time, users will be able to withdraw tokens to third-party crypto wallets and exchanges.

Not the first time

This is not the first time Monero has had problems withvarious crypto exchanges. In the fall of 2020, electronic trading platform ShapeShift removed “sensitive coins” from its trading list: Monero, Dash and Zcash. Then the exchange also explained its actions by its reluctance to get into trouble with the law. Similar actions were taken in January 2021 by the crypto exchange Bittrex, which also wanted to avoid conflict with the authorities. The most famous crypto exchange Coinbase in 2020 generally refused to include Monero in its trading list – precisely because of the position of the regulatory authorities.

Source: twitter.com

How does this threaten Monero?

The Monero cryptocurrency was created precisely asa coin that provides users with an unprecedented level of privacy through advanced cryptography. It allows you to hide transaction amounts and wallet addresses, ultimately preventing the user’s identity from being tracked. 

At the same time, authorities in various countries fear thatcriminals will use Monero, as well as other cryptocurrencies with a high level of confidentiality, for their own purposes, so they are tightening control over them. Against this background, the decisions of trading platforms to delist or remove Monero can be called quite expected, but they cannot be called positive for the cryptocurrency itself. 

Now this cryptocurrency is ranked 43rd in terms ofcapitalization with an indicator of just over $ 4 billion. At the same time, despite the fact that over the past month its market rate fell by 13%, in general, the dynamics of the rate of this cryptocurrency is still quite positive. However, if crypto platforms continue to abandon this asset, its value may continue to decline.