Last year, in 2022 most privacy coins were delisted from most centralized exchanges CEXs. I see only 2 reasons for that as follows.
Why are private coins delisted on some exchanges?
Privacy Coins are those cryptocurrencies that preserves and hides transaction data, so no one can capture and analyse what, when, and who the transaction is.
The delisting of privacy coins is tied to a country's views or AML/CFT obligations and how it regulates private transactions in response. While privacy-focused cryptocurrency transactions can elude regulators, financial watchdogs have dominion over centralized exchanges on untraceable cryptocurrency.
When a regulator bans a particular cryptocurrency within its borders, an exchange needs to halt trading as soon as possible or risk being shut down. In such cases, some crypto marketplaces may choose to halt trading while others would completely pull off the coin from their platform.
Privacy coins are facing increased scrutiny from regulators in the last couple of months, which have compelled some exchanges to delist these untraceable cryptocurrencies in order to avoid regulatory complications.
In light of this event, top privacy coins like dash (dash), Monero (XMR) and Zcash (ZEC) have been delisted by multiple leading trading platforms including Bittrex, Coincheck, Coinbase UK and shapeshift (while conversely, Gemini actually added Zcash in September 2020).
The reason behind the delisting was the FATF standards recommendation 16 travel rule requirement which places tremendous pressure on country regulators to ensure their exchanges, or virtual asset service providers (VASPs), share user-identifying information with each other when transmitting funds. A regulator forces compliance by requiring their VASPs to meet this obligation when applying for an operating license or registration.
It is worth to mention; is that love trading volumes in the CEXs also adds another reason for delisting privacy coins.
KUCOIN, is a well known exchange delisted PIVX not bcuz of it as a privacy coin. But, bcuz it suffered low trading volume, so KUCOIN delisted PIVX and left other coins being traded.
BITTREX, still allow some privacy coins listed such as PIVX; but, only supports the transparent addresses.
READ MORE : Transparent vs Shield Address
What is a privacy coin? The quick version. (pivx.org)
Even, BINANCE, has delisted the PIVX-BUSD for the same reason but left PIVX-BTC active.
Despite all these measures, some reports indicate that criminals still prefer - Bitcoin and Monero - over other privacy coins, despite its lack of privacy features of BITCOIN.
CONCLUSION
Privacy Coins will never die. Privacy is a human right and we all seek privacy everywhere. Many recent projects are adding zkSNARKs protocol to blockchains to preserve privacy and keep transaction data hidden.
So, even though, the big pressure against privacy coins, THEY will SURVIVE.
