- Kraken will stop trading privacy coin monero for UK customers this month, according to an email last week.
- By November 26, UK users will not be able to open or add functionality in monero.
- A Kraken spokesperson said the exchange was responding to the guidance of the UK regulator.
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Cryptocurrency exchange Kraken will ban UK customers from trading in the privacy cryptocurrency from next week, according to a company email shared on Reddit last week.
The email mentioned that by November 26, UK users will not be allowed to trade Monero (XMR) on its platform for bitcoin, dollars or euros. The email said no UK deposits would be made after Friday, but balances from that date could be withdrawn to a personal wallet or other exchange.
Any open margin positions must be closed by Friday, Kraken said in the email, and if they are not, they will be liquidated and any open orders canceled.
People will also be able to reduce margin positions in monero and will not be able to increase or open new margin positions from Tuesday.
A Kraken spokesperson said the company is in compliance with the guidelines issued by the Financial Conduct Authority, the UK’s regulator for financial markets.
“The UK’s Financial Conduct Authority recently clarified a position on monero. As one of the world’s largest cryptocurrency exchanges, we are constantly balancing offering one of the most comprehensive asset pools available to crypto investors and traders, with all regulatory compliance obligations in place. out,” the spokesperson said in an email response on Monday.
“In this case, the FCA provided clear guidance and we have responded accordingly.”
Monero is a privacy coin which means that through advanced encryption, these coins can obscure public wallet addresses and payments when transactions occur on the blockchain. It is difficult to digitally trace the identity of people who conduct coin transactions.
Privacy coins like monero are a variety of cryptocurrencies used for private and anonymous blockchain transactions that can mask a user’s real wallet address and balance, for example. Blockchains like bitcoin or ethereum allow anyone to see public addresses and transactions on their systems. Cryptocurrency exchanges are increasingly cautious about privacy coins, especially given the increased scrutiny from regulators.
Bittrex said at the beginning of this year that it would stop customers from trading privacy coins, including monero, dash and zcash. In July last year, Coinbase, the largest listed exchange, said it would for the time being delay listing privacy coins, given the regulatory uncertainty surrounding these assets. Meanwhile, Binance, the world’s largest exchange by volume, continues to offer monero trading.