Shapeshift revives privacy focus with Zcash shielded support

Multichain DEX aggregator ShapeShift has announced support for shielded transactions with the Zcash privacy cryptocurrency, as part of its self-custodial wallet. This move is supported by a $50,000 Community Grant aimed at enhancing ShapeShift's technical and marketing efforts, promoting on-chain privacy for users. The announcement marks a return to a focus on privacy after ShapeShift transitioned from a centralized exchange in 2020, eliminating Know Your Customer (KYC) requirements in favor of a decentralized model. The integration of shielded ZEC is expected to expand access to private transactions and align with values of privacy and self-custody that Zcash promotes. Experts are noting that the growth of privacy-focused services is often met with regulatory scrutiny, as seen with recent EU proposals to ban privacy-preserving tokens. While Zcash uses zero-knowledge proofs to provide optional shielded transactions, increasing regulations could pose challenges for the ongoing development of privacy in the cryptocurrency space.

Source 🔗