Binance Drops Monero, Prompting Darknet Platforms to Shift Back to Bitcoin – Chainalysis

Bitcoin Regains Favor on Darknet as Monero Loses Ground Post-Delistings

The crackdown on privacy coins is reshaping payment preferences on the darknet. With monero (XMR) facing widespread delistings from major exchanges, bitcoin (BTC) is once again becoming the go-to currency for illicit online purchases, according to blockchain analytics firm Chainalysis.

Eric Jardine, who leads cybercrime research at Chainalysis, said BTC inflows into darknet markets have spiked since monero was dropped from prominent platforms like Binance and OKX.

“Liquidity and accessibility are critical for any currency to thrive in underground economies,” Jardine told CoinDesk. “With monero becoming harder to acquire, users are pivoting back to bitcoin.”

At one point, many darknet markets in the West had fully embraced monero or used it alongside bitcoin due to its strong privacy features. But monero’s decline started after OKX delisted it in late 2023, followed by Binance’s announcement in early 2024, citing compliance and risk assessments.

The impact has been sharp: monero’s daily transaction count has been cut in half year-over-year, based on BitInfoCharts data.

“While privacy is valued, if a coin isn’t accessible or liquid enough, it loses utility,” Jardine noted.

He also clarified that criminal use of crypto remains relatively small. “Illicit activity accounts for around 0.14% of total crypto volume. It’s important not to generalize the entire industry based on a small subset.”

Meanwhile, stablecoins like USDT are increasingly used for shady transactions. But issuers are responding. The T3 Financial Crime Unit, formed by Tron, Tether, and TRM Labs, has already frozen more than $100 million in suspect funds this year.

Darknet enforcement often centers on fentanyl-related operations, which remain a top priority for global regulators. Markets that traffic in fentanyl or its ingredients are more likely to attract legal scrutiny, Jardine explained.

“Some markets claim to ban fentanyl but don’t enforce it. Others allow precursor chemicals. It’s inconsistent across platforms.”

The U.S. Treasury recently took action against Nemesis Market, a darknet hub tied to fentanyl sales. Authorities sanctioned its operator, Behrouz Parsarad, along with 44 BTC and 5 XMR addresses linked to the operation.