Monero is in an unusual position. The number of venues that will trade it has been shrinking for two years, and demand for it has not fallen with it. If anything, the delistings appear to have concentrated activity rather than suppressed it. That pattern says something worth examining about how regulated markets and privacy assets are separating. The delisting wave The trend started with individual exchange decisions and hardened into something closer to a regional policy. Binance removed Monero from its platform in February 2024. Japanese and South Korean venues removed privacy assets under domestic rules. More than seventy exchanges have delisted Monero since 2024, and the European Union's anti-money-laundering package is expected to restrict anonymity-enhancing coins at regulated venues by 2027. The logic on the exchange side is not complicated. A regulated custodial venue has to be able to trace the provenance of assets it holds for customers. Monero is engineered so that this is not possible. For a licensed exchange, that is an unresolvable tension, and delisting is the cheaper answer. What happened to the demand The assumption behind delisting is that removing access reduces interest. That is not what the data shows. Monero has held its position among the larger assets by market capitalisation through the entire delisting period, and search interest for terms around acquiring and exchanging XMR has stayed strong. What changed is where the activity happens. As custodial venues exited, volume moved toward non-custodial services that route trades directly between wallets without holding balances. These platforms are structurally different: they do not maintain user accounts, so there is no listing decision to reverse and no customer balance sitting on the platform. A user sends one asset and receives another at their own address. That is not the same as being outside the rules, since these services route through licensed liquidity providers who screen deposits, but it does mean a delisting at a custodial venue does not remove the route. This is why a mid-size Bitcoin to Monero exchange now handles flow that would previously have gone through a top-ten centralised venue. The demand did not disappear. It relocated to the part of the market that can still serve it. Who is actually using it The common assumption is that privacy-coin demand is driven by people with something to hide. That assumption is doing a lot of work, and very little of it is evidenced. It looks more like ordinary financial privacy. Businesses that do not want competitors reading their treasury movements on a public chain. Individuals in countries with unstable banking who would rather their savings not be publicly enumerable. People who simply object to the idea that every transaction they make is permanently searchable by anyone. Bitcoin's transparency was a design feature intended to establish trust without an intermediary. It also means that anyone who learns one of your addresses can read your financial history. Demand for privacy assets is, in large part, a correction to that. What this means for the market Two markets are separating rather than one market shrinking. Regulated custodial venues are consolidating around assets they can trace and report on. Non-custodial infrastructure is absorbing the assets they cannot. Both continue to grow. For anyone holding Monero, or considering it, the practical consequence is that access has moved rather than closed. Converting between major assets and privacy coins still takes minutes, whether that is Bitcoin, Ethereum into Monero , or the reverse direction. The regulatory pressure is unlikely to reverse. But the assumption that it would end privacy-coin demand has been tested for two years now, and the result is reasonably clear. The post Why Monero demand is rising as major exchanges delist privacy coins appeared first on Invezz
