Bittrex Delisting Privacy Coins Monero (XMR), Zcash (ZEC), and DASH Without Any Explanation
Kraken CEO dispels any regulatory pressure, says market removal could be something business-specific. Meanwhile, these coins drop 17% to 23% while DASH argues its “privacy functionality is no greater than Bitcoin’s.”
Cryptocurrency exchange Bittrex has announced the removal of privacy coins from its platform after removing XRP markets for its US customers. Monero (XMR), Zcash (ZEC), and DASH are the affected cryptocurrencies.
Starting Jan. 15, 2021, 23:00 UTC, BTC-XMR, ETH-XMR, USDT-XMR, BTC-ZEC, ETH-ZEC, USDT-ZEC, USD-ZEC, BTC-DASH, ETH-DASH, USDT-DASH, and USD-DASH would no more be available on the platform.
After this, Bittrex users would have up to 30 days, a period that may be shortened in “certain instances,” to withdraw any of these delisted tokens. The exchange states, after the withdrawal deadline, “there may be circumstances under which a user may not be able to withdraw a token due to events outside of Bittrex’s control.”
From a technical standpoint, Dash’s privacy functionality is no greater than Bitcoin’s, making the label of “privacy coin” a misnomer for Dash. We have reached out to @BittrexExchange to request a meeting with their compliance team. Hopefully this will be rectified soon. https://t.co/QA66OoshPn
— Dash (@Dashpay) January 1, 2021
Up until now, only XRP XRP 10.06% XRP / USD XRPUSD $ 0.71
$0.0710.06% Volume 6.67 b Change $0.07 Open $0.71 Circulating 46.31 b Market Cap 32.89 b 1 d SWIFT Takes Swipe At Ripple With A Cheaper Cross-border Payment System 6 d 50% of Family Offices Wants to Invest In Cryptocurrencies: Goldman Sachs Report 6 d Stellar Mulls Potential Acquisition of MoneyGram, One of the Largest Money Transfer Services trading and deposits were suspended and only for the US customers due to SEC’s lawsuit against Ripple and its two executives for allegedly selling unregistered securities, but now more cryptos are being targeted. Trader CryptoSqueeze noted,
“Privacy coins are the next on the target list. Bittrex might just be the beginning. This is gonna be a rough and uncertain year for alts.”
Bitcoin BTC -0.04% Bitcoin / USD BTCUSD $ 39,881.45
-$15.95-0.04% Volume 36.43 b Change -$15.95 Open $39,881.45 Circulating 18.77 m Market Cap 748.56 b 11 h A Shift in Momentum: Binance Yields to Regulatory Pressure, the Definition of HQ Changing for CZ Too 13 h US Lawmakers See All the “Flashing Warning Signs” of Cryptocurrency Putting USD at Risk 13 h Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts and Ethereum ETH -0.73% Ethereum / USD ETHUSD $ 2,294.38
-$16.75-0.73% Volume 17.85 b Change -$16.75 Open $2,294.38 Circulating 116.88 m Market Cap 268.17 b 13 h Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts 1 d Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 1 d Bitcoin Hash Rate Recovers to 110 TH/s as Price Rallies Past $40k, Thanks to Largest Short Squeeze Ever are free from any such uncertainties because they have been explicitly stated by regulators to not be a security because they are decentralized.
Meanwhile, Bittrex’s lack of explanation on their motive behind this decision has led the crypto twitter (CT) to speculate.
“Privacy is a constitutional right, not a crime,” said Jake Chervinsky, General Counsel at Compound Finance who shares his disappointment on exchanges removing crypto assets with privacy-preserving features. “There's no law or regulation requiring this, just DOJ's opinion that privacy is “indicative of possible criminal conduct,’” he added.
The de-listing of privacy coins from regulated exchanges was the inevitable escalation in govt attempts towards totalitarian financial surveillance.
Ironically, while this shows these privacy coins work, the market is "upset"
Decentralized exchanges still list them ;-)
— Andreas M. Antonopoulos (@aantonop) January 1, 2021
According to Josh Swihart, SVP of Growth at Electric Coin Company, the creators of Zcash, there could be more than what meets the eye here. He pointed out how US-based crypto exchanges Gemini and Coinbase recently added additional support for ZEC.
Meanwhile, other crypto exchanges clarified that there isn’t any regulatory pressure to delist these privacy-focused cryptos.
“Haven’t heard of anything on the regulatory side. Presumably, it’s something specific to their business,” said Jesse Powell, co-founder, and CEO of crypto exchange Kraken. He also shared that these cryptos meanwhile are not supported by Kraken in Australia because of being “banned by local fiat funding rails” and that they are working on the alternatives.
Zcash $ZEC is easily the most underrated crypto right now. It brings privacy to money, which is a fundamental building block of a free and open society. Proud that @Gemini supports this noble project with @NYDFS approval.
— Tyler Winklevoss (@tyler) January 1, 2021
For now, the damage has been done to these cryptos price-wise as they performed poorly following the delisting news.
XMR dropped over 11% in the last seven days and is currently trading around $138, DASH lost 17% of its value in the last seven days and is now trading at $89 and after a 13% drop, ZEC is now keeping around $58.
Some believe XMR, DASH, ZEC’s loss can be Litecoin’s gain which is working on bringing privacy to the network. Ever since Bitcoin bulls went crazy in Oct., LTC also moved in tandem, up 183% in the last three months to climb the levels not seen since June 2019.