“Regulators can be comfortable with crypto-currencies that allow privacy,” says Gemini.
Gemini, a crypto coin exchange founded by the Winklevoss twins, aims to improve the privacy of its users with an important privacy token, Zcash (ZEC).
From 29 September, Gemini will offer protected withdrawals from the ZEC, allowing users to hide their transaction details.
Gemini representatives said that the new feature is the “first time that protected withdrawals from the ZEC are available on a regulated exchange”. The new option is in line with Gemini’s mission to strengthen financial privacy and “empower the individual through crypto currencies,” said Gemini executives.
Launched in 2016, Zcash is a major privacy-focused cryptosoft scam currency that allows two levels of privacy for its users through two types of addresses: transparent or t-addresses, and protected or z-addresses. Unlike transparent addresses, protected ZEC addresses are designed to encrypt and hide transaction data such as the sender, the receiver and the amount sent.
According to Gemini, the exchange will store ZEC in t-addresses. To complete a protected withdrawal from the ZEC, users must simply withdraw their ZEC to a z-address. Exchange users can already deposit ZEC from a z-address into their accounts.
Gemini did not specify whether it received any special regulatory approval to allow protected ZEC withdrawals. However, the representatives said that the new feature “demonstrates that with the right controls in place and the right education, regulators can be comfortable with crypto-currencies that allow privacy.
The addition of protected withdrawals from the ZEC in Gemini comes amidst regulatory uncertainty about Zcash.
As we reported earlier, some global exchanges such as Japan’s Liquid had to remove Zcash from their platform to comply with regulations. In the course of 2019, a number of crypto coin services such as OKEx and Upbit cut support for Zcash along with the privacy coin Monero (XMR), citing concerns about its anonymous nature. In August 2019, the leading US cryptomoney exchange, CoinBase, announced that it would no longer offer Zcash custody to its UK-based customers.