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Gemini, a cryptocurrency exchange founded by the Winklevoss twins, aims to improve user privacy with a major privacy token, Zcash (ZEC).
Starting September 29, Gemini will support ZEC’s secure withdrawals, which allows users to hide their transaction data.
Gemini reps said the new feature is the “first time that secure ZEC withdrawals are available on a regulated exchange.” The new option is in line with Gemini’s mission to enforce financial privacy and “empower the individual through cryptography,” Gemini executives said.
Launched in 2016, Zcash is one of the leading privacy-focused cryptocurrencies, allowing two levels of user privacy through two types of addresses: transparent or shielded addresses or z addresses. Unlike transparent addresses, shielded ZEC addresses are designed to encrypt and hide transaction data such as sender, recipient, and amount sent.
According to Gemini, the exchange will store ZEC in t addresses. To complete a shielded ZEC pickup, users can simply pick up their ZEC at a z address. Exchange users are already able to deposit ZEC from a z address into their accounts. A Gemini spokesperson said there are no limits for screened ZEC withdrawals on the platform.
Gemini said the new feature “demonstrates that with the right controls in place and proper education, regulators can feel comfortable with cryptocurrencies that enable privacy.” A rep told Cointelegraph:
“Establishing thoughtful regulation and asking for permission, not forgiveness, is critical to Gemini’s DNA. Through ongoing conversations with regulators and further training on cryptocurrencies that enable privacy, we were able to identify and implement the controls necessary to make protected ZEC withdrawals available to our customers. “
Gemini’s addition of protected ZEC withdrawals comes amid the regulatory uncertainty about Zcash.
As previously reported, some global exchanges such as Japanese Liquid have had to remove Zcash to comply with regulations. Over the course of 2019, a number of crypto services such as OKEx and Upbit cut support for Zcash along with leading privacy coins Monero (XMR), citing concerns about their anonymous nature. In August 2019, the leading US cryptocurrency exchange Coinbase announced the end of custody of Zcash for UK-based customers.
