What Privacy Coins Ban? Monero Rockets to New High

Monero (XMR) is back in the spotlight after posting one of the strongest rallies in the cryptocurrency market this year, just as regulators in Dubai move to ban privacy tokens from exchanges.

Over the past eight days, Monero surged more than 44%, smashing through previous resistance and printing a new all-time high (ATH) near $610. The move has pushed XMR to the front of the privacy sector, overtaking rivals like Zcash (ZEC) as traders rotated into censorship-resistant assets.

According to the analysis shared by blockchain and crypto industry monitoring platform Santiment in an X post on January 12, the rally has been driven by a sharp spike in social dominance, with Monero mentions exploding across X, Telegram, and trading communities. As the firm noted:

Popular traders quickly jumped on the breakout. CryptoTony posted that XMR is now up 35% since his breakout trade, declaring that:

“PRIVACY COINS ARE MAKING A COMEBACK.”

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Meanwhile, CoinsKid summed up the move in one word: “Ping!” The message that Monero is officially back on traders’ radar was clear.

Privacy Coins Lead The Market Rotation

Monero’s breakout is part of a broader rotation into the privacy sector, which has quietly outperformed the rest of crypto over the past three months. While meme coins and artificial intelligence (AI) tokens dominated headlines in late 2025, privacy assets have been steadily building momentum beneath the surface. 

Now, that rotation is becoming impossible to ignore. XRM’s rally has been accompanied by rising trading volume, strong breakout structures across multiple timeframes, increasing social dominance, and renewed institutional and OTC interest.

Technically, Monero has broken out of a multi-month consolidation range, flipping major resistance into support and opening the door for further upside, assuming momentum holds. It is currently trading at $672.22, up 19.7% on the day, gaining 50.6% across the week, and advancing 64.5% on its monthly chart.

However, crowded trades and social FOMO often lead to short-term pullbacks. Santiment data shows that development activity has lagged behind price, suggesting that speculation is currently driving the move as opposed to fundamentals, which sets the stage for elevated volatility.

Dubai Bans Privacy Tokens On Exchanges

Just as Monero hits new highs, regulators in Dubai are moving in the opposite direction. The Dubai Financial Services Authority (DFSA) has officially banned privacy tokens from regulated exchanges inside the Dubai International Financial Centre (DIFC), citing anti-money laundering and sanctions compliance risks.

Under the updated Crypto Token Regulatory Framework, privacy assets like Monero and Zcash are now prohibited across trading, promotion, fund activity, and derivatives within the DIFC.

Elizabeth Wallace, associate director for policy and legal at the DFSA, told CoinDesk that the decision was unavoidable for a jurisdiction aligned with global compliance standards.

“[Privacy tokens] have features to hide and anonymize the transaction history and also the holders. (…) It’s nearly impossible for firms to comply with Financial Action Task Force requirements if they are trading or holding privacy tokens.”

However, the ban applies only to regulated exchanges. Residents can still hold privacy coins in private wallets. However, it marks one of the strongest regulatory crackdowns on privacy assets globally. 

As it happens, the move mirrors the European Union’s MiCA framework, which is effectively pushing privacy coins and mixers out of regulated markets altogether.

Privacy Versus Regulation

Indeed, Monero’s breaking of records is happening against the backdrop of regulators accelerating efforts to remove privacy assets from compliant financial systems. 

This growing tension highlights a fundamental divide in crypto’s future, where traders want censorship resistance, regulators want traceability, and privacy coins offer neither compromise. 

As capital rotates into privacy assets, regulatory pressure is rising just as fast. That contradiction could fuel even more demand or trigger violent volatility. For now, Monero sits at the eye of the storm.

The Bottom Line

Monero has surged over 44% in just eight days, printing a new ATH and reclaiming its throne as crypto’s dominant privacy coin. At the same time, Dubai has banned privacy tokens from exchanges, tightening the regulatory screws just as demand is exploding.

For traders, this is a comeback. Regulators may see it as a compliance risk, and the market is preparing for potential volatility.

Monero Price Today

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