Gemini Adds Confidential Zcash Withdrawals

Users of the Winklevoss’ cryptocurrency exchange, Gemini now have the option of withdrawing their Zcash (ZEC) tokens confidentially, the exchange announced in a blog post on September 29.

According to the announcement, the exchange now supports shielded withdrawals of ZEC, which enables their users to take out assets off the platform without giving away their identities or the size of the transactions. Gemini also pointed out that this is the first time that shielded ZEC withdrawals were made available on a regulated exchange. The blog post reads:

“This is an exciting moment for crypto, marking the first time shielded ZEC withdrawals are available on a regulated exchange. Gemini’s mission is to empower the individual through crypto. 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.”

Zcash is a major privacy-focused tokennwhich allows its users to keep their privacy through the use of two types of addresses, a transparent (t-address) and a shielded (z-address). The z-addresses have been designed to encrypt and hide transaction data, such as the amount sent, the sender and receiver. While Gemini did allow its users to deposit ZEC through z-addresses, they were previously forced to use t-addresses when making a withdrawal.

While the exchange did not specify if it had received any special regulatory approval to introduce this feature, the Electric Coin Company (ECC) wrote in its own blog post that Gemini had done so after receiving approval from the New York Department of Financial Services (NYDFS). The Head of Regulatory Relations at ECC, Jack Gavigan, said in a statement:

“This announcement demonstrates that Zcash is compatible with a robust AML/CFT regulatory regime. We applaud both Gemini and the New York State Department of Financial Services for taking the time and effort to understand how Zcash’s privacy-preserving features work and how they can be supported while remaining fully compliant.”

Gemini’s decision to embrace the private nature of ZCash is in stark contrast to that of other major exchanges that have been delisting ZEC alongside other privacy-focused cryptocurrencies since 2019.