In 2022, the European Commission proposed legislation aimed at banning cryptocurrencies that provide a high level of privacy such as Monero and Zcash in the context of combating money laundering and terrorism, targeting self-custody wallets that do not require user identity verification, making it difficult to track transactions. This proposal sparked controversy in a community where some viewed it as a threat to privacy.
On June 26, 2023, Binance announced plans to halt trading of 12 cryptocurrencies for four European countries: France, Italy, Poland, and Spain, including Monero, Zcash, Dash, Verge, Firo, MobileCoin, and others. Binance explained that this decision was made due to local regulatory requirements. On June 26, 2023, Binance reversed its decision after reviewing its operations and responding to community feedback and affected projects, announcing a reclassification of privacy-focused cryptocurrencies to comply with EU requirements, affirming its commitment to local regulations.
Europe is witnessing efforts to regulate digital assets with the adoption of the Markets in Crypto-Assets (MiCA) regulation in May 2023, which aims to provide a comprehensive regulatory framework for cryptocurrencies in the European Union.
Developments in Cryptocurrency Regulation
Recent months have seen significant developments in the European Union's policy towards privacy-focused cryptocurrencies, particularly regarding Binance, which is one of the largest cryptocurrency trading platforms globally.$XRP
