Crypto exchange Gemini has added support for “shielded” Zcash (ZEC) withdrawals for an additional layer of financial privacy.
ZEC addresses are of two types: “Transparent” that start with a “t,” and private or shielded, which begin with a “z.” Transactions made with t addresses are traceable, while transactions with z addresses are all encrypted using a technology called zero-knowledge proofs.
Gemini said using a shielded address allows users to protect their identity and size of transactions. “If you’d like to take advantage of a shielded withdrawal, simply withdraw your ZEC to a z-address,” said the exchange.
A Gemini spokesperson told The Block that the exchange has been able to implement this feature following “ongoing conversations with regulators and further education on privacy-enabling cryptos.”
When asked how would Gemini trace fund movements via shielded ZEC addresses, 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.”
Gemini already supports ZEC deposits from a shielded address, and so does Coinbase.
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