Market Times:

London:

New York:

Singapore:

News

Binance Now Rejects Zcash (ZEC) Deposits from Shielded Addresses

Binance no longer accepts Zcash deposits from shielded addresses, citing regulatory concerns.

Wilfred Michael•May 15, 2024
Zcash Binance

An update from Electronic Coin Company confirms that popular cryptocurrency exchange Binance no longer accepts Zcash deposits from shielded addresses. This development has attracted the displeasure of the Zcash community, with many complaining that Binance did not place a warning regarding such deposits.

Does Binance Accept Zcash Deposits from Shielded Addresses?

Zcash is a privacy-focused cryptocurrency that allows users to anonymously transfer value using shielded addresses. As the name implies, these kind of addresses only reveals the amount that the user transfers but do not disclose the destination address, thus providing anonymity.

However, Binance appears to no longer accept such deposits, citing compliance with regulations in the user’s region. Recall that Binance already delisted the more popular privacy coin Monero over a similar issue but has allowed Zcash (ZEC) because it also supports transparent and traceable addresses.

Nonetheless, the exchange does not include a message reminding Zcash users that they only accept funds from transparent addresses. Instead, users only learn this after they have tried depositing ZEC via a shielded address, as a case study on the Zcash forum reveals.

Binance Rejects Zec Deposit
(Source: Zcash Forum)

Users who make this mistake may have to endure a 30-day waiting period before Binance refunds the failed deposit. Hence, the warning by Electric Coin Company, the entity that developed Zcash (ZEC), is to prevent users from depositing funds from shielded addresses to the exchange.

It is also worth mentioning that the case typically involves users transferring ZEC from the widely used Zashi mobile wallet to Binance. Meanwhile, a ZEC Community Grants member has revealed that the project plans out to Binance so that the exchange may include a warning to users regarding its non-acceptance of deposits from shielded addresses.

In addition, the project team is developing so-called TEX addresses, which will create a transparent address for users before funds are moved on to exchanges like Binance. The member wrote on the Zcash forum that with such addresses, the current issue with Binance could be avoided in the future.

Wilfred Michael

Wilfred Michael is a highly experienced cryptocurrency journo. He has spent more than five years covering this exciting new technological space, and relishes the opportunity to play a role in driving what he considers to be the future of finance.