Unfortunately governments are increasingly violating the human right to privacy as they seek more control over their populations. The USA policy to sanction countries and individuals depends on being able to track fund flows across the world. After all, how can intermediaries that enforce sanctions stop transactions from A to B unless A and B no longer have privacy? As a result bureaucrat are creating more and more compliance requirements to erode privacy.

The effect of these government demands means intermediaries like Binance are under increasing pressure to meet more regulations. One such regulation is that the sending address for deposits must be known and not shielded. This creates issues for ZCash Shielded Addresses, Monero, and other coins that have privacy. As a result, Binance is threatening delisting unless they can guarantee deposits come from Transparent Addresses and not Shielded Addresses.

This reality means ZCash either needs to meet this requirement or it could potentially become delisted from Binance and other exchanges. In our opinion meeting this requirement will have minimal impact on privacy. However, considering this, meeting this requirement will likely only appease regulators for a short time and then they will demand more.

As of now it looks like the ZCash development team will make the necessary changes to appease Binance, so it should be safe from an immediate delisting. In whatever case we will make tools and education resources to ensure people know how to maintain the most privacy regardless of future changes. Our ZCash Wallet will continue to maximize privacy for each of our users and we intend to support efforts of decentralized exchanges so dependency on centralized services like Binanace are less.