Gemini, the cryptocurrency exchange founded by the Winklevoss twins, plans to improve user privacy with a major privacy token, Zcash (ZEC).
It has been reported that Gemini will support shielded withdrawals of ZEC, starting September 29, which allows users to hide their transaction data.
However, Gemini representatives said that the new feature is the “first time shielded ZEC withdrawals are available on a regulated exchange.” The new option comes in line with Gemini’s mission to strengthen financial privacy and “empower the individual through crypto.”
Launched in 2016, Zcash is a major privacy-focused cryptocurrency, enabling two user privacy levels through two types of addresses, transparent, or t-addresses, and shielded, or z-addresses.
Gemini now supports shielded Zcash $ZEC withdrawals! This is an exciting moment for #crypto, marking the first time shielded $ZEC withdrawals are available on a regulated #exchange. More about Zcash and different types of $ZEC transactions here: https://t.co/VuwL1G8IEs — Gemini (@Gemini) September 29, 2020
In contrast to transparent addresses, shielded ZEC addresses are designed to encrypt and hide transaction data like sender, receiver, as well as the amount sent.
According to Gemini, the exchange will store ZEC in t-addresses. In order to complete the withdrawal of shielded ZEC, users can simply withdraw their ZEC to a z-address. Exchange users are already able to deposit ZEC from a z-address into their accounts.
A spokesperson for Gemini said that there is no limit for shielded ZEC withdrawals on the platform.
Gemini said that the new feature “demonstrates that with the right controls in place and the proper education, regulators can get comfortable with privacy-enabling cryptos.”
A representative said:
“Establishing thoughtful regulation and asking for permission, not forgiveness, is core to Gemini’s DNA. Through ongoing conversations with regulators and further education on privacy-enabling cryptos, we’ve been able to identify and implement the controls needed to make shielded ZEC withdrawals available to our customers.”
Thus, Gemini’s addition of shielded ZEC withdrawals comes amid regulatory uncertainty over Zcash.
Source: Cointelegraph