Binance, the world’s largest cryptocurrency exchange by volume, is facing mounting criticism from prominent figures in the crypto community after placing privacy-focused token Zcash (ZEC) on a shortlist of candidates for potential delisting.
The move came as part of a user vote that also included controversial assets such as FTX’s defunct FTT token and the data-centric platform JASMY.
Zcash, with a current market capitalization of approximately $500 million, saw its price dip by 3.1% following the announcement, trading around $31.26 at the time of reporting. The proposal has ignited debate about the role of privacy in crypto and whether centralized exchanges are yielding to regulatory pressure at the expense of foundational crypto principles.
The decision prompted a swift response from industry veterans. Zcash founder Zooko Wilcox publicly addressed Binance CEO Richard Teng in a strongly worded post on X (formerly Twitter), stating: “You’re considering delisting Zcash!? What kind of world are you creating? Do you want your children to grow up in peace and prosperity, or a Black Mirror episode?"
Other leading voices echoed the concern. Barry Silbert, founder of Digital Currency Group, voiced support for Zcash and disappointment in Binance’s stance, while Ledger CTO Charles Guillemet and Cosmos co-founder Ethan Buchman emphasized the importance of preserving user privacy within blockchain ecosystems.
At the heart of the issue lies the ongoing tension between privacy technologies and regulatory scrutiny. Privacy coins like Zcash, Monero, and Dash have long been under the microscope due to their potential use in illicit financial activity. In 2022, a leaked European Union document revealed proposals to ban privacy coins altogether, citing anti-money laundering concerns.
Binance, which operates globally, has increasingly found itself navigating complex regulatory landscapes. Delisting privacy coins has become more common among exchanges aiming to remain compliant in stricter jurisdictions. In recent years, Binance has delisted or limited access to privacy tokens in countries with tighter oversight.
However, the pushback against Zcash’s inclusion on the delisting ballot reflects a broader philosophical rift within crypto - between the ideals of decentralization and privacy, and the commercial realities of centralized platforms operating under legal constraints.
Complicating the narrative is the recent regulatory shift in the U.S., where sanctions against Tornado Cash - a privacy protocol previously targeted for facilitating illicit transactions - were lifted just last month. The development has rekindled arguments that privacy tools can be used ethically and lawfully within the financial system.
As the debate unfolds, the fate of Zcash on Binance remains uncertain, but the industry response suggests any final decision will carry broader implications for how privacy is treated within the centralized exchange ecosystem.