Winklevoss-Backed Gemini Exchange Rolls Out Zcash (ZEC) Shielded-Address Withdrawals For Transaction Privacy
- The U.S regulated exchange, Gemini, launches shielded Zcash (ZEC) withdrawals after a two-year wait.
A blog post on crypto exchange Gemini confirmed privacy-enabled Zcash (ZEC) users can now withdraw their tokens to private addresses instead of transparent addresses. Zcash provides users with a blockchain similar to Bitcoin but with added options to hide user data and transactions through the use of zero-knowledge proofs (ZKPs).
While widely regarded as a privacy-coin, in the breath of Monero (XMR), Zcash (ZEC) offers two wallet options to its users. First, the t-addresses broadcast all information about the transaction made – the sender’s and receiver’s wallet addresses and balances on both addresses. However, sending ZEC through shielded address masks the sender’s / receiver’s wallet address and balance.
The transactions are recorded on the blockchain, but the information is encrypted.
The regulatory-friendly exchange states the latest move as “a step in the right direction,” demonstrating the power of blockchain innovators working with authorities. The feature is set to increase user’s privacy by offering shielded ZEC withdrawals on a regulated exchange. The statement reads,
“By providing you with this feature — confidential, encrypted withdrawals — we are taking another step toward giving you back control of your privacy and advancing our mission.”
Gemini listed ZEC back in 2018, boasting itself as the first regulated exchange to list a privacy-enabled coin. At launch, Gemini’s CEO, Tyler Winklevoss, stated the focuses would be supporting deposits from shielded and transparent addresses – but t-addresses only for withdrawal, with a plan for z-addresses. Now is the time!
“If you’d like to take advantage of a shielded withdrawal, simply withdraw your ZEC to a z-address. We already allow you to deposit ZEC from a z-address into your Gemini account,” the statement reads.
Gemini is focusing its strengths in developing products in-line with regulation – a play that has worked so far. Following an exodus of crypto firms and exchanges from the U.S., Gemini built its rapport with regulators gaining the New York Department of Financial Services money transmitter license. In August, BEG reported the exchange got approval from U.K’s financial watchdog, Financial Conduct Authority (FCA) in a quest for expansion in Europe.