Crypto Exchange Gemini Adds Support For Privacy Coin ZCashbr>
Cryptocurrency exchange Gemini has received approval from the New York Department of Financial Services (NYDFS) to offer custody services and trading of Zcash, a privacy-focused cryptocurrency with a market valuation of over $1 billion.
The exchange will begin accepting deposits in Zcash on May 19 and trading would begin on May 22. Gemini also received approvals for Bitcoin Cash and Litecoin, though details about when these cryptocurrencies might go live remain sparse.
Gemini president Cameron Winklevoss said that they have been working closely with the NYSDFS to obtain approval to offer Zcash trading and custody services to their customers as a New York trust company.
“Our approval makes Gemini the first licensed Zcash exchange in the world,” Winklevoss said. “It also makes the NYSDFS the first regulatory agency in the world to supervise Zcash, reaffirming their position as the leading financial regulator in the area of digital assets. Regulatory certainty and oversight are critical for both fostering innovation and protecting consumers — and we’re excited to provide our customers with a safe, secure, and regulated platform to buy, sell, and store Zcash.”
Winklevoss explained that part of the appeal of Zcash is a privacy-protecting feature that allows counter-parties to engage in trade without knowing anything about each other.
“The Zcash protocol’s cutting edge use of zero-knowledge succinct non-interactive arguments of knowledge (“zk-SNARKS” or “zero-knowledge proofs”) makes it a truly innovative privacy coin that offers confidentiality for peer-to-peer transactions similar to those afforded to fiat currency transfers (e.g., ACH, FedWire, SWIFT, etc.),” Winklevoss said.
In June 2015, the NYDFS published final cryptocurrency rules after a nearly two-year inquiry into the appropriate regulatory guidelines. BitLicense applicants are subject to a rigorous review of anti-money laundering, capitalization, consumer protection and cyber security standards.
In October 2015, the NYDFS issued a charter to Gemini to operate a crypto exchange, allowing customers to buy and sell cryptocurrencies for USD and vice-versa.