After Monero, now it is the turn of another privacy coin to be removed from the trading of shapeshift. THE'exchange of Colorado, known for the ability to self-protect its resources granted to users, has in fact proceeded to delisting of Zcash.
A measure that arouses not only uproar, but also a considerable surprise. ShapeShift, in fact, had decided to invest in the Electric Coin Company, one of the pillars on which the token is based, in 2016.
ZEC's adventure on the exchange therefore did not last long, and it had decided to include it in its trading in October.
The statements of ShapeShift
To comment on the decision was Veronica McGregor, ShapeShift's chief legal officer, in an interview. In which he stated that it is due to need to eliminate privacy coins to comply with increasingly stringent laws, which are practically cutting the grass under the feet of those who do not comply with the KYC (Know Your Customer) and AML (Anti Money Laundering) regulations.
A need that the exchange cannot ignore, despite Erik Voorhees' libertarian past. Considered a real forerunner in the cryptography sector, from the top of an activity that has lasted since 2011, or from the dawn of the same.
The beginnings of ShapeShift now seem light years away
The history of Voorhees, moreover, in many ways resembles that of ShapeShift, an exchange platform which had distinguished its beginnings for the notable anarchist inspiration, so as to allow its users to create transactions without any need to open an account.
In 2018However, the exchange had to begin to comply with the increasingly stringent regulations put in place by the monetary authorities, with the express aim of stopping, or at least limiting, the laundering of dirty money and the use of virtual money in illegal activities.
If Voorhees continued to cultivate some dangerous relationships, for example the one with Ross Ullbricht, the founder of Silk Road, one of the main markets of the Dark Web, imprisoned for life precisely for its illegal activity on the most hidden part of the web, ShapeShift instead had to adapt, in order not to be hit by justice.
Zcash's response to the ShapeShift initiative
Zcash's response to the incident was in practice entrusted to Peter Van Valkenburgh, research director at Coin Center and member of the board of directors of the Zcash Foundation. Which proceeded to explain to CoinDesk that the leadership of the United States Financial Crimes Enforcement Network, also known as FinCEN, states that cryptographic platforms must take reasonable steps to counter illegal activities, not before having given rise to a cost-benefit analysis. That is, they have to treat customers like banks do when a person shows up at a counter carrying a bag containing cash. By setting up a check to know where they actually come from. This was not done in the case of ShapeShift, which has practically closed its trading on privacy coins.
Thus creating a rather dangerous precedent. Other trading platforms, in fact, could at this point follow suit. If that happens, the future for Monero, Dash, Zcash and Grin could get very hazy. Unless, in turn, the technical characteristics that guarantee very high confidentiality profiles are relaxed.