- ZCash price jumps by 6% after Gemini adopts it to facilitate shielded withdrawals
- The shielded ZEC withdrawal function ensures protection for user transactions and identities
- There’s still a lot of negative press on privacy coins
ZCash News Today – New York-based crypto exchange Gemini, has launched a solution that will see its users carry out shielded Zcash withdrawals. After the news, Zcash’s price surged by 6%. The 33rd-biggest crypto by market cap is reportedly up by 110% year-to-date. The new withdrawal feature will give users the chance to move the ZEC coins in their Gemini wallets from t-addresses to z-addresses.
Zcash is one of the biggest privacy coins. The network now offers the shielded withdrawal option for users. Recall that Gemini originally allows its users to deposit money from z-addresses. Meanwhile, the report added that the shielded withdrawal feature would help the user through crypto.
The Shielded ZEC Withdrawal Function ensures Protection for User Transactions and Identities
The shielded ZEC withdrawal function makes sure that user identities and transactions are protected. According to an excerpt from the announcement:
“By giving you this feature, we are taking one step toward giving you control of your privacy. We are also advancing our mission at the same time. This demonstrates that with the appropriate controls and proper education, regulators will become comfortable with privacy-based cryptocurrencies.”
Gemini added that the shielded ZCash withdrawal feature is the first of its kind on the exchange. Recall a past report from August, the exchange got a license from the U.K’s FCA (Financial Conduct Authority) to operate there. With Gemini working in a regulated market like the U.S, private transactions or not, the cryptocurrency platform must still record and report every movement of funds to the authorities or relevant regulatory agencies.
There’s Still Plenty of Negative Press About Privacy Coins
Unlike Monero (a privacy coin as well), shielded Coinbase is not activated by default on Zcash. Hence, it is still possible that a huge part of such types of withdrawals on Gemini may not enjoy the privacy feature. Privacy tokens have had a lot of negative press over the years. Regulators have warned users of privacy tokens. The reason is that privacy coins make transactions difficult to track. Regulators believe they are used for criminal activities. In August, the cryptocurrency intelligence company CipherTrace announced the creation of tracking capabilities for privacy coins. In this case Monero.
In September, the United States IRS (Internal Revenue Service) issued a $625,000 reward for anyone with the ability to hack the network. However, despite the negative press surrounding privacy tokens, Litecoin is still going forward with its MimbleWimble upgrade (which is slated for a September 30 launch). MimbleWimble will enhance Litecoin’s scalability and introduce privacy to the Blockchain.