Zcash, the privacy-centric cryptocurrency with a $500 million market cap. Now, according to a post on its forum, Binance – the world’s largest cryptocurrency exchange – is thinking of delisting it. This recent development has opened up a firestorm of debate inside the crypto community. Others are de-emphasizing the need for privacy features within digital currencies. Zcash, currently trading at $31.26, is down 3.1% in the last 24 hours.
Binance listed Zcash as part of a recent initiative polling users to vote to delist tokens from the exchange’s offerings. It gained notoriety by appearing on the ballot next to FTX’s FTT token and data security platform JASMY. Zcash’s inclusion on this list would be particularly controversial – and what an outsized reaction it’s gotten from today’s crypto industry leaders. A few founders have led the charge against the proposed delisting.
Digital Currency Group founder Barry Silbert has come out strongly against Binance’s decision to restrict access, taking to Twitter threads to air his grievances. Ledger CTO Charles Guillemet and Cosmos co-founder Ethan Buchman have emphasized the importance of privacy in the crypto space, echoing the wider sentiment that privacy-preserving technologies are crucial.
Zcash's privacy features have made it a topic of discussion among financial regulators, particularly as authorities grapple with the balance between legitimate privacy and potential illicit use. The U.S. government had previously outlawed the privacy protocol Tornado Cash, citing its ties to illicit activity. Last month, they temporarily lifted those sanctions. Although Zcash has a large market cap, the market cap is quite small compared to those of other large cryptocurrencies. This discrepancy might leave Zcash susceptible to the whim of delisting decisions.
