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Privacy-focused Zcash is deployed on Coinbase.com

Privacy-focused Zcash is deployed on Coinbase.com
Dec 6, 2018 by Rico Wise

Currently, ZEC currency is supported by the majority of the jurisdictions, excluding the state of New York and the UK. The announcement published by Zcash claims that other jurisdictions may become included later.

It is worth reminding that subsequent to the value gains registered upon the original Coinbase Pro listing, which took place last week, the digital currency then encountered the so-called Coinbase Effect by dropping 17% over just one day on Nov 30. While giving details regarding the support of the privacy-heavy potential of Zcash at the Coinbase platform, the firm unveiled that it would provide limited support for protected transactions until local legislation makes the complete implementation of transaction protection available.

After the news became public on social media accounts of the Coinbase exchange, a variety of reactions ranged from extremely positive to unimpressed at best. Some people dwelled on the idea that the development might have ramifications for the prolonged privacy of ZEC currency. As per this philosophy, this key feature of the digital currency, which is protected by a zero-knowledge cryptography, might become vulnerable after going live on the San Francisco-based exchange.

This is due to the fact that the exchange is located in the US and therefore is subject to state and federal legislation, as well as the compliance to the authorities supervising it, such as the Securities and Exchange Commission and FINRA, with its KYC and AML policies. Deploying the KYC policies for the sake of trading ZEC currency, theoretically, would result in a clash with the very concept of the digital currency, making it expose the identity of all users trading ZEC currency at the exchange.

However, Zooko Wilcox, the founder of Zcash, shared his optimism, claiming that Coinbase will maintain the privacy standards established by Zcash, despite the overflowing counterarguments.

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