Regulated US Exchange Gemini Now Offers Confidential Zcash Withdrawals

Gemini said adding shielded zcash withdrawals showed regulators could be made to be comfortable with privacy coins.

Sep 29, 2020 at 2:52 p.m. UTC
Updated Sep 14, 2021 at 10:02 a.m. UTC

Gemini, one of a handful cryptocurrency exchanges regulated in New York, has said users can now withdraw privacy coin zcash confidentially.

  • The New York-based exchange said in a blog post Tuesday it had added "shielded" zcash withdrawals – meaning users can take assets off the platform without disclosing their identities or the size of their transactions.
  • The addition comes after Gemini received approval from the New York Department of Financial Services.
  • The exchange claims it's the first time shielded zcash transactions have ever been supported on a regulated exchange.
  • "[W]ith the right controls in place and the proper education, regulators can get comfortable with privacy-enabling cryptos," the blog post reads.
  • “This announcement demonstrates that zcash is compatible with a robust AML/CFT regulatory regime,” Jack Gavigan, head of regulatory relations at the cryptocurrency's lead developer, Electric Coin Company, said in a statement, referring to anti-money laundering/combating the financing of terrorism.
  • Gemini, which only supports 24 digital assets, first listed zcash back in 2018. It has been registered under a Limited Purpose Trust Charter – which authorizes it to perform certain bank-like functions – since 2015.
  • Although users have been able to deposit zcash into Gemini with the shield feature, they have previously been forced to turn off privacy settings in order to withdraw assets from the platform.
  • A Gemini spokesperson declined to provide further comment, pointing CoinDesk instead back to its blog post.
  • Last year, several exchanges dropped zcash and other privacy coins, citing regulatory compliance and concerns over money laundering.
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