January 23, 2022

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

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

There are rumors in the market that the Kraken crypto exchange will close access to confidential trading at the end of November Monero token for users fromGreat Britain. At the same time, Kraken is not the first trading platform to delist this cryptocurrency. To what extent can such actions of the exchange turn out to be critical 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.

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

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 a problem withvarious crypto-exchanges. In the fall of 2020, the electronic marketplace ShapeShift removed from its trading list "confidential coins": Monero, Dash and Zcash. Then the exchange also explained its actions by unwillingness to get problems with the law. Similar actions were taken in January 2021 by the Bittrex crypto exchange, which also wanted to avoid a conflict with the authorities. The famous crypto exchange Coinbase in 2020 refused to include Monero in its trading list at all - precisely because of the position of the regulatory authorities.

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

Source: twitter.com

How does this threaten Monero?

Monero cryptocurrency was created exactly ascoin providing users with an unprecedented level of privacy through advanced cryptography. It allows you to hide the amounts of transactions and wallet addresses, not allowing you to ultimately trace the identity of the user.

At the same time, the authorities of various countries are afraid thatcriminals will use Monero, as well as other cryptocurrencies with a high level of privacy, for their own purposes, therefore, tightening control over them. Against this background, the decisions of trading platforms to delist or remove Monero can be called quite expected, but at the same time 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.

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

Source: coinmarketcap.com

Author: Dmitry Noskov - expert of the StormGain crypto exchange (platform for trading, exchanging and storing cryptocurrency)

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