THELOGICALINDIAN - Zcash is absolutely adjustable with antimoney bed-making laws and FATF recommendations causing problems for the cryptocurrencys aloofness
Gemini announced that they are abacus withdrawals to cloistral Zcash addresses, allegedly accretion aloofness for users. Even admitting cloistral ZEC affairs can be private, Gemini will abide to use cellophane ZEC addresses to abundance its user’s assets. They charge do this if they achievement to accede with recommendations from the Financial Action Task Force.
Zcash’s regulatory brief explains how “virtual asset account providers” like Gemini can abide absolutely adjustable with AML requirements:
“Zcash has been advised to be accordant with the AML / CFT measures recommended by the Financial Action Task Force on Money Laundering (FATF), including chump due diligence, record-keeping, advertisement apprehensive transactions, and accouterment appropriate artist and almsman advice for basic asset transfers amid VASPs (often referred to as the “Travel Rule”).”
Transactions amid cloistral addresses are bleared and can be advised private. But all affairs into and out of Gemini are recorded and appear to regulators, back necessary, acceptation that cloistral addresses won’t advance chump aloofness by all that much.
Regardless, this is a footfall in the appropriate direction. Gemini’s accommodation to abutment withdrawals to cloistral addresses makes the user acquaintance smoother. Instead of banishment users to alteration to a cellophane and again to a cloistral address, Gemini helps users skip one footfall in the process.
While Zcash is a privacy-focused cryptocurrency, it does not accept these appearance enabled by default. Research from Carnegie Mellon University shows that 99% of users abort to advantage Zcash’s aloofness appearance correctly. Other privacy-focused cryptocurrencies such as Monero accept aloofness appearance enabled by default, a application Zcash’s administration has been absorption back 2018.
