The increasing pressure of regulators on institutions in the crypto market is taking shape as one of the most important problems of 2021.
As more institutions are interested in investing in this asset class, regulators are taking action. This development was inevitable, no country could have expected a corner stop as the cryptocurrency industry was rising. But the successive developments surprised everyone, especially investors.
In this context, the crypto exchange Bittrex has announced that it will no longer support trading for the following trading pairs: Bitcoin / Monero, Ethereum / Monero and Tether / Monero. This will also apply to the privacy-focused coins Zcash and Dash.
Users have until Friday, January 15, 2021, 23:00 UTC to complete any event related to the specified cryptocurrencies. After that, the trade transaction will be removed with the possibility of withdrawing up to 30 days later. However, Bittrex has made it clear that this period could be shortened. Users are advised to withdraw any funds in Monero, Zcash and Dash before the trade stop date. In a press release, Bittrex used the following statements:
“THERE MAY BE SITUATIONS WHERE A USER CANNOT WITHDRAW A TOKEN DUE TO EVENTS OUTSIDE OF BITTREX’S CONTROL.”
Other exchanges can track Bittrex and remove privacy-focused coins from their lists. Still, Kraken co-founder and CEO Jesse Powell stated that they “heard nothing” from regulators. Powell said Bittrex’s decision was about “a situation specific to their business.” Bittrex is likely trying to comply with a norm set by a payment processor or bank to keep their accounts open. Powell noted that these entities “could make any illogical rules” and that the platforms had to comply. Compound General Counsel Jake Chervisky said the following on the subject:
“SEEING THAT THE EXCHANGES REMOVE THE ASSETS BECAUSE THEY HAVE PURE SECURITY PROTECTION FEATURES CREATES A GREAT DISAPPOINTMENT. THERE IS NO LAW OR REGULATION REQUIRING THIS, ONLY THE DOJ’S OPINION THAT CONFIDENTIALITY IS A “INDICATOR OF POSSIBLE CRIMINAL BEHAVIOR”. ”
Trader Michaël van de Poppe believes the regulations will negatively affect prices in the short term. At the time of broadcast, XMR, ZEC and DASH have lost more than 10% in the last 24 hours. Just like XRP, these privacy coins may continue to drop in prices in the coming weeks. However, in the long run, users can choose to use assets like Monero to protect their privacy. This will depend on the seriousness of the regulations applied in each country. Trader added:
“THESE REGULATIONS OPEN THE WAY FOR THE GLOBAL ADOPTION OF INSTITUTIONS AND THE CRYPTO IN GENERAL, AND INVOLVELY SIGN UP THE LONG-TERM VIEW OF THE MARKET.”