Binance to block privacy coins in four European countries

Binance is set to delist privacy coins in France, Italy, Poland and Spain.

The measure comes into effect on June 26 and will impact 12 privacy coins including Decred, Dash, Zcash, Horizen, PIVX, Navcoin, Secret, Verge, Firo, Beam, Monero and MobileCoin. 

Privacy coins are a type of cryptocurrency designed to anonymize transactions by implementing technologies such as zero-knowledge proofs that can conceal transaction details and make it difficult to track the sender, recipient and transaction amounts. The European Union has been actively addressing money laundering concerns associated with anonymous crypto transactions and is considering new regulations that could ban privacy coins.

Earlier today, the European Banking Authority said in draft guidance that crypto companies should watch out for customers using privacy coins as they try to spot potential money laundering activity.

"While we aim to support as many quality projects as possible, we are required to follow local laws and regulations regarding the trading of privacy coins, to ensure we can continue to serve as many users as we can," a Binance spokesperson told The Block. 

"As part of Binance's ongoing compliance processes, we have reached out to affected users, to notify them that they will no longer be able to purchase or trade privacy tokens on our platform after June," the spokesperson added.

Withdrawals of privacy coins in the four European countries will remain open, according to an email seen by The Block that was shared by a crypto trader who goes by Tree of Alpha on Twitter and is a Binance user in Europe.