5 Privacy Coins Face Delisting on Gate.io Exchange

Gate.io to Delist Privacy Coin Perpetuals

Crypto exchange Gate.io has announced plans to discontinue perpetual contracts for five prominent privacy coins. Starting December 25, 2024, trading for Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN), and Verge (XVG) will enter “reduce-only” mode, allowing traders to close existing positions but not open new ones. By 08:00 UTC on December 26, all trading for these contracts will cease entirely.

Transition Timeline and Settlement Details

As part of the delisting process:

• All open orders associated with these contracts will be canceled.

• Remaining positions will be automatically settled.

• Settlement prices will be calculated based on the average index price from the 30 minutes prior to delisting.

In cases of significant market volatility, Gate.io stated that it would extend the settlement timeframe to ensure fairness and prevent price manipulation.

The platform has urged users to review their trading strategies and close positions ahead of the deadline to ensure a seamless transition. Gate.io emphasized that these steps aim to protect traders and facilitate an orderly adjustment.

Regulatory Pressures on Privacy Coins

Privacy coins have increasingly drawn regulatory scrutiny due to their advanced anonymity features, which can obscure transaction details. While Gate.io did not explicitly cite regulatory issues as the reason for its decision, similar actions by other exchanges suggest compliance challenges may be a factor.

The total market capitalization for privacy coins currently stands at $6.47 billion, reflecting a 10.4% drop over the past 24 hours.

Implications for Traders and the Market

The delisting highlights the growing pressure on privacy-focused cryptocurrencies as global regulators tighten oversight on financial transparency. Traders and investors in these assets may face diminishing opportunities for trading and must adapt to the evolving regulatory landscape.

As the December deadline approaches, users are encouraged to stay informed and take necessary actions to manage their positions effectively.