Gemini Now Supports Shielded Withdrawals for Zcash

September 30, 2020 3:07 PM UTC

Gemini, the crown jewel in the Winklevii empire, has announced to add support for shielded Zcash to enhance user privacy. Gemini spokesperson claims that the new initiative is the“first time shielded ZEC withdrawals are available on a regulated exchange.” 

Zcash is a privacy-oriented crypto asset that facilitates user privacy through two types of addresses, transparent and shielded. In comparison to transparent addresses, protected ZEC addresses are built to encode and conceal exchange information like sender, beneficiary, just as the funds transferred. 

Users can now protect their identity and transaction volume, “If you’d like to take advantage of a shielded withdrawal, simply withdraw your ZEC to a z-address,” said the exchange.

Gemini Support Amid Uncertain Conditions 

Gemini’s support for ZEC comes amid administrative uncertainty over privacy tokens. During the sessions of 2019, several crypto exchanges, including OKEx and Upbit, had removed support for Zcash and Monero due to their mysterious nature. Furthermore, Coinbase, a giant US-based crypto exchange, closed Zcash custody for users based in the United Kingdom.

However, Gemini has been able to achieve this feature by following “ongoing conversations with regulators and further education on privacy-enabling cryptos,” said exchange spokesperson.

While responding about shielded fund movements, the spokesperson said: “Gemini maintains a record of every withdrawal that leaves our system. While we have full transparency into the flows at this point, once the funds are in the shielded pool — and at that point encrypted — we no longer have insights and we don’t track customers’ withdrawals after they leave.”

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