Paper Number

ECIS2026-1805

Paper Type

CRP

Abstract

Regulators have imposed specific compliance obligations onto service providers for “anonymity-enhancing coins”. These compliance obligations have led service providers to delist crypto-assets that do not modify their protocols to support compliance objectives. However, opinions differ on whether such delistings effectively reduce the value of these crypto-assets, or whether they continue to prosper in shadow markets. This study examines the impact of a major delisting event: Binance’s removal of Monero in February 2024. Using the synthetic control method, we find that delisting led to a significant negative impact on Monero’s trading price, given market conditions, with no immediate recovery observed. These results suggest that regulatory intervention, through exchange delistings, can be an effective tool in influencing the market performance of crypto-assets with inbuilt anonymization functions. At the same time, the findings underscore the growing tension between regulatory oversight and the public’s interest in financial privacy.

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Jun 14th, 12:00 AM

Are The Regulators Winning The Fight With Anonymity-Enhancing Coins? Studying Binance’s European Delisting Of Monero As A Natural Experiment

Regulators have imposed specific compliance obligations onto service providers for “anonymity-enhancing coins”. These compliance obligations have led service providers to delist crypto-assets that do not modify their protocols to support compliance objectives. However, opinions differ on whether such delistings effectively reduce the value of these crypto-assets, or whether they continue to prosper in shadow markets. This study examines the impact of a major delisting event: Binance’s removal of Monero in February 2024. Using the synthetic control method, we find that delisting led to a significant negative impact on Monero’s trading price, given market conditions, with no immediate recovery observed. These results suggest that regulatory intervention, through exchange delistings, can be an effective tool in influencing the market performance of crypto-assets with inbuilt anonymization functions. At the same time, the findings underscore the growing tension between regulatory oversight and the public’s interest in financial privacy.

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