The Binance exchange platform announced this Thursday, January 4, the tightening of trading rules for 10 cryptos, including Monero (XMR) and Zcash (ZEC). The latter will now be placed under “enhanced surveillance” due to the increased risks they present.
Binance tightens its monitoring of high-risk cryptos
In a recent press release, Binance, the world leader in crypto exchange platforms, announced that it would extend its “monitoring beacon” from January 4, 2023.
This decision comes after Binance’s recent regulatory setbacks, facing allegations of money laundering and violations of KYC rules issued by the American SEC.
Among the additional cryptos placed under close surveillance are two valuations focused on transaction confidentiality: Monero (XMR) and Zcash (ZEC). These two cryptos have regularly attracted the wrath of the authorities for their anonymization properties, conducive to large-scale money laundering according to some regulators.
Besides Monero and Zcash, Binance will also be closely monitoring Keep3rV1, Reef, Aragon, Firo, MobileCoin, Mdex, Vai and Horizen tokens. At the same time, the rules are relaxed for GMX and SushiSwap, removed from the list.
Binance justifies its decision by the fact that these cryptos are more volatile and present more risks of illicit use than others. OKX had already restricted the trading capabilities of several similar cryptos last week. Therefore, regular checks ensure that they continue to meet the strict rating criteria. Failure to comply with these criteria may result in their removal.
A decision that is part of the compliance policy
To be able to trade these high-risk cryptos, Binance users will now have to take a quiz every 90 days. They will also have to accept the reinforced conditions of use of the platform, aimed at making them aware of the dangers involved.
Furthermore, tokens bearing the Binance “Seed Tag” label are considered promising projects, but very volatile. Risk warning banners will be clearly visible on their trading pages.
Binance has insured conduct periodic reviews of crypto projects, taking into account factors such as team engagement, development progress or compliance with KYC due diligence. These analyzes will allow tokens to be added or removed from watch lists.
Well aware of the pressing expectations of regulators, Binance seems ready to make certain sacrifices, even if this involves restricting transactions on a few cryptos popular with traders. By toughening its compliance policy, it hopes to regain the shaken confidence of the authorities in 2023.
In short, this delicate balance between increased security and maintaining its dominant position reflects the difficult exercise of calming down undertaken by the crypto giant.
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